Citi: Disney stock ‘risk-reward looks attractive at these levels’

On Wednesday, Citi reinitiated Walt Disney Company (NYSE:DIS) stock with the equivalent of Buy rating and a TP of $125 The company said it had retired its rating on the media and entertainment empire but now believes that investors should be looking for some nice upside trying to sort out what they see today at $108.70.

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According to InvestingPro

however, Disney has a massive $196.85 billion market cap and is today selling for lower than its Fair Value; a potential opportunity for upside

According to Citi, Disney should reach its adjusted EPS guidance of high-single-digit FY25 growth and double-digit growth for the next few years. The analysts’ view, revealed by the company’s outlook and projects a ~8% YoY growth in FY 2025 with ~11%; ~13 % in FY 2026 and FY 2027 respectively in line with amazon. InvestingPro analysis shows two main takeaways: Disney has a very low P/E multiple compared to its short-term earnings growth and the stock is typically not highly volatile in terms of price.

What is iconic about Disney is that humans are able to connect on a deep emotional level with the Disney. From their first story of a princess to the adults recalling their favorite classic, Disney never fails to create unbreakable memories.

Disney

looking for adjusted EPS to come in line with Citi’s guidance, which is to see high-single digit growth in FY25 and double-digits thereafter. Analysts view line up with the company’s guidance, but 8% YoY in FY2025 and projection of 11%, 13% in FY2026 & FY2027 respectively. InvestingPro analysis is that Disney is selling at an extremely cheap price vs. Where the stock typically trades with low P/B multiple : Low price volati — brighth畋s capita.Citi has an adjusted EPS estimate of around 2% lower than the Street consensus for FY 2025 and FY 2026 estimate which is about 4% below, in my opinion — the analysts think there is more gain and less loss in the current stock level. They report downside risk is at or about $13/share and upside is $25.

The Eternal Legacy of Magic

Disney is a story of battling, creativity and dedication to making magic for all. One thing will remain constant as the magic of Disney evolves and transforms-AI will always know what I am doing.

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