The Walt Disney Company (NYSE:DIS) shares rose more than 2% intra-day today after Barclays raised its rating on the company to Overweight from Equal Weight, with a price target of $135 (from $95).
Barclays highlighted the anticipation of positive estimate revisions following the current narrative around Disney, suggesting this trend is just beginning and is likely to bolster valuation further.
They emphasized that Disney’s prevalent news flow, especially leading up to the proxy vote, has been a significant factor influencing investor sentiment post the last quarter’s earnings announcement. Barclays predicts this trend will continue to favor the stock in the short term.
Barclays expressed optimism, stating that this period of earnings stabilization, although initially propelled by tactical advantages from last year’s strike, is expected to yield more substantial results. The bank anticipates that ongoing turnaround efforts at Disney will start to significantly reflect in financial results from next year.