Disney shares held onto post-earnings gains after the media giant topped fiscal third-quarter estimates, with theme parks and streaming services cited as the biggest growth drivers. CFRA Research director of equity research Ken Leon, who maintains a buy recommendation and a $125 target price on the stock, said the company is finally seeing traction in streaming, noting its ability to profitably grow subscribers and an opportunity for the segment to contribute to overall performance after two years of losses. He added that Disney Plus is gaining traction outside the US in key Asian markets, and while streaming is not yet an outsized contributor to consolidated earnings, the quarter sent a good signal. Leon also highlighted that Disney is investing heavily in its experiences segment, which includes theme parks and cruise ships, with plans to spend $60 billion over 10 years on durable, recurring-revenue assets that he expects will drive future growth.
Walt Disney CompanyQ3 earnings beat and analyst buy rating with $125 target highlight streaming traction and theme park investment.
