Disney’s Stock Gets An Upgrade, Wolfe Research Says ‘Castle’ Is Intact Amid Recession Risks
Synopsis
The brokerage set a $112 price target and projected a potential earnings path to $7 per share.)
Wolf Research upgraded Walt Disney (DIS) shares to ‘Outperform’ from ‘Peer Perform’ on Monday, citing durable strengths in the company’s core businesses even amid broader recession concerns.
In a note to clients cited by TheFly, Wolfe said the Disney "castle" remains "intact," pointing to long-term advantages across its theme parks, cruise lines, and streaming operations.
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The brokerage set a $112 price target and projected a potential earnings path to $7 per share.
Wolfe argued that at around $85, Disney is trading at a 23% discount to the S&P 500, and sees just 17% downside in a worst-case scenario.
On average, Wall Street has a price target of $123.47, representing a potential 45% upside from the previous session’s closing price, according to Koyfin data.
The upgrade comes despite mounting geopolitical pressure. Earlier this month, Disney shares declined after China’s Film Administration announced a reduction in U.S. film imports in response to President Donald Trump’s latest tariff measures.
“The wrong action of the U.S. government’s indiscriminate tariffs on China is bound to further reduce the favorable impression of domestic audiences on American films,” the agency said.
In its latest 10-K filing, Disney listed “international, political or military developments, including trade and other international disputes,” as potential risks to its global operations.
Disney is scheduled to report fiscal second-quarter earnings on May 7. Analysts expect earnings per share of $1.22 on revenue of $23.13 billion, according to consensus estimates.
Ahead of the second-quarter release, the company has faced renewed pressure around the financial performance of its live-action slate.
The live-action remake of Snow White earned just $69 million domestically and $145 million globally, against an estimated $270 million production budget.
Earlier this month, Disney paused pre-production on its upcoming live-action adaptation of Tangled, a move widely seen as a direct response to the disappointing box office results of Snow White.
Disney’s stock is down 24% in 2025 and has declined 25% over the past 12 months, underperforming broader market benchmarks.
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