Citi lifts Disney price target to $145 following strong second-quarter earnings
The Walt Disney Company reported a 7% rise in revenue and a 1% surge in free cash flow in its latest quarter, prompting Citi to maintain a ‘Buy’ rating and increase its price target.
Citi has raised its price target for The Walt Disney Company from $135 to $145, maintaining a ‘Buy’ rating on the shares. The adjustment, made on May 8, follows the release of Disney’s second-quarter earnings report on May 6, which demonstrated stronger-than-expected financial performance across key metrics.
The entertainment giant reported a 7% year-on-year increase in revenue and a 4% rise in total segment operating income for the quarter. These figures exceeded market forecasts and outperformed the company’s own guidance. Additionally, Disney reported a 1% surge in free cash flow, reaching $4.94 billion.
Looking ahead, the company has projected 12% growth in adjusted earnings per share for fiscal year 2026, with expectations of double-digit growth for fiscal year 2027. To support shareholder returns, Disney also announced a target of at least $8 billion in share repurchases for the ongoing year.
Citi’s revision of the price target reflects an updated financial model following the Q2 results. The firm notes that the adjustment implies an upside potential of over 35% from current levels, underscoring confidence in the media enterprise’s ability to sustain momentum across its core segments, including Disney Entertainment, ESPN, and Disney Experiences.
While the analyst firm acknowledges Disney’s position as a leading diversified international family entertainment and media enterprise, it also highlights broader market opportunities. The report suggests that certain artificial intelligence stocks may offer greater upside potential and carry less downside risk compared to Disney, particularly given trends related to onshoring and tariff policies.
