Disney stock rose early Wednesday after receiving a price target hike from UBS. The Dow Jones entertainment giant rallied more than 30% so far in 2024, outperforming the broader market, and is tracking toward two-year highs.
UBS analyst John Hodulik raised his price target on Disney stock to $140 from $120 in a research note Wednesday. The note pointed to multiple avenues for potential upside which should drive earnings estimates higher over the next several quarters, according to The Fly. UBS forecasts Disney to achieve a 25% three-year compound annual growth rate and $9 billion in free cash flow for 2024, ballooning to $14 billion by 2026. The note also said free cash flow growth should support dividend growth, ramp up stock buybacks and incremental investments.
UBS remains bullish on Disney stock with a buy rating, Hodulik wrote.
UBS' free cash flow outlook is ahead of the FactSet consensus of $8.2 billion for 2024. FactSet analysts expect Disney free cash flow increases to $10.26 billion in 2026.
Disney Stock
DIS stock rose about 1.5% early Wednesday following the research note.
Disney rallied nearly 33% so far this year through Tuesday's close, outperforming the 4.2% gain from the Dow Jones Industrial Average and the 9.1% advance from the S&P 500.
Shares are approaching a 23-month high after recovering from their October lows.
Disney stock is extended just above a cup-with-handle buy zone after breaking out above the 112.92 buy point on March 4.
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