Disney Shares To Rise 30% Over The Next 12 Months As A Result Of A Strong Film Slate

Investors are advised to revisit Disney stock due to the company's strong slate of films.

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Disney shares were reiterated as a buy by the bank. Disney's short- and long-term earnings estimates have been raised by the bank, implying a 34.6% rally for shares if the price target rises to $135. Several of the analyst's other growth projections are for Disney's fiscal year rather than for the next 12 months. 

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As a result of a number of factors, we believe that now is an opportune time for investors to revisit Disney's stock, Kraft wrote in a note on Tuesday. 

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In the second half of 2023, Kraft said the company is already well positioned for growth. The company's Entertainment segment expects to generate year-over-year margin improvements in its third quarter, while its Parks & Consumer Products division expects to continue growing its revenues and margins. 

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Analysts predict Disney's Entertainment segment estimates will grow this year due to its impressive film lineup. Among the "tentpole titles" he mentioned was "Guardians of the Galaxy Vol. Kraft said these releases "have the potential to drive better profitability for the studio." They include "Thrones of the Gods," "The Little Mermaid," and "Indiana Jones and the Dial of Destiny."

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"Finally, F2023 may be the first 'normal' year in box office terms since the pandemic since quality films have generated large box offices YTD," he added. 

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Additionally, Kraft anticipates that Disney's international parks and cruises businesses will normalize in the fiscal 2023 year while domestic parks will continue to grow at a low double-digit rate.

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Over the past 12 months, Disney shares have lost more than 20% of their value.

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