Wolfe Research has upgraded The Walt Disney Company (NYSE: DIS) from ‘Peer Perform’ to ‘Outperform’, setting a price target of $112. This move highlights growing confidence in Disney’s ability to weather economic headwinds thanks to its iconic brand and diversified business model.
📌 Analyst Peter Supino pointed out the strength of Disney’s major business lines—theme parks, cruise lines, and the expanding streaming segment. These pillars are expected to drive significant earnings potential, with estimates projecting up to $7 per share. At its current price of around $85, Disney trades at a steep discount to the broader S&P 500, offering an attractive entry point for long-term investors.
📌 Even in a scenario of broader economic stress, Wolfe estimates Disney’s downside risk is relatively limited, giving investors a favorable risk/reward profile. The company’s resilience is a key factor in the upgrade, especially as other media stocks continue to face structural challenges.
📌 CEO Bob Iger’s strategic overhaul—featuring a $5.5 billion cost-cutting initiative and a sweeping reorganization—is starting to bear fruit. These changes are particularly aimed at driving profitability in the streaming business, which has seen intensified competition in recent years.
💰 Dividend Fundamentals
💸 Disney has reinstated its semi-annual dividend, with a $0.50 per share payment scheduled for July 23, 2025. The ex-dividend date is June 24, 2025.
💸 This results in a forward annual dividend of $1.00 per share, yielding approximately 1.18% at current share prices.
💸 With a payout ratio around 24.33%, Disney is balancing shareholder returns with reinvestment for future growth.
💸 While not a high-yield stock, the reinstatement signals management’s confidence in cash flows and the company’s overall financial stability. For investors seeking a mix of capital appreciation and steady income, Disney’s improved outlook and dividend resumption make it one to watch.