Disney (DIS) Stock Forecast & Price Target

Walt Disney's revenue growth rate is projected to increase by 40-60 basis points annually over the next decade, following a strategic write-off associated with the ABC network, which is expected to enhance its overall trading multiples by 0.2x. The company’s financial estimates indicate anticipated total revenues of $95.6 billion by FY25, reflecting a robust growth outlook of 4.6%. Overall, Disney's strong portfolio of iconic franchises and characters across its entertainment, sports, and experiences segments positions it favorably for sustained revenue growth and valuation expansion.

Walt Disney faces significant challenges in its Linear Networks segment, with an estimated revenue of $9.6 billion, including a projected 11% year-over-year decline in revenues from the ABC network and its owned and operated stations, estimated at approximately $4 billion for FY25. Additionally, there are considerable risks stemming from rapid declines in linear TV subscriptions, which could adversely affect ESPN's ratings and revenue, alongside potential adverse economic conditions impacting park attendance, hotel occupancy, and cruise ship revenue. Furthermore, the emerging technological disruptions associated with generative AI are expected to increase operational costs and contribute to volatility in Disney's valuation, particularly with respect to its ownership of ABC.