Disney Stock Forecast Why Disney Could Soar in 2025

Cruises, Parks and Global Experience

Disney stock has already gained 11% since the beginning of the year, but according to Jefferies' new forecast, there's still room for growth. Theme parks, cruises, streaming, and upcoming blockbusters are expected to drive the growth that could make Disney soar in 2025.

Disney stock has already gained 11% since the beginning of the year, but according to Jefferies' new forecast, there's still room for growth. Theme parks, cruises, streaming, and upcoming blockbusters are expected to drive the growth that could make Disney soar in 2025.

Since 2016, Disney has struggled to show growth in operating profit, mainly due to the decline of linear television and heavy investments in streaming. Now, according to Jefferies' Disney stock forecast, the picture is beginning to change.

One of the main growth drivers identified is the Experiences division, parks and cruise entertainment. According to Jefferies, the expected launch of two additional ships is projected to add over a billion dollars to annual revenue by 2026. This expansion supports the bullish Disney stock forecast for 2025.

The concern about a tourism slowdown in Orlando following the opening of competitor Comcast's Epic Universe park is dissipating. According to their assessment, the new park will attract more tourists to central Florida, which will also benefit Disney World gates.

The company recently announced a $60 billion investment plan over the next decade in its Experiences sector, including parks, cruises, and consumer products. Half of this amount will flow to U.S. parks, primarily Disney World and California. Additionally, Disney recently revealed plans to establish a huge new park in Abu Dhabi, expected to open within about five years and give the company its first footprint in the Middle East.

In streaming, Jefferies forecasts a transition from loss to profit: According to the forecast, Disney's streaming services profit margins (including Disney+, Hulu, and ESPN+) are expected to rise from 0% today to 13% by 2028. This streaming turnaround is a key reason why Disney could soar in 2025.

A significant contribution is expected to come from launching ESPN direct-to-consumer service, aimed at the American sports audience.

Content is expected to strengthen, with the rise of popular films like Zootopia 2, Avatar 3, and Fantastic Four, alongside new seasons of acclaimed series like The Bear. According to the Disney stock forecast, the combination of quality content, leveraging digital platforms, and reducing losses could return Disney to center stage.

Alongside optimistic forecasts, Disney operates in an unstable media market. Major competitors like Warner Bros and Comcast are splitting their linear television operations in an attempt to streamline the transition to streaming, a process that indicates the depth of the industry crisis. Disney, unlike them, continues at this stage to maintain its holdings in networks like ABC, despite declining profitability.

Within the company, Disney faces a leadership challenge. The company is in the process of selecting a new CEO to replace Bob Iger, who returned to his position in November 2022 after Bob Chapek's dismissal. According to estimates, the decision is expected to be made by the end of the year, with prominent candidates including Dana Walden, Josh D'Amaro, Alan Bergman, and Jimmy Pitaro, each representing a different direction for the company's future. The new CEO selection could significantly impact the Disney stock forecast and whether Disney will soar in 2025.

In the last quarter, Disney reported earnings per share of $1.45 - a 20% increase compared to the same period last year. Company revenues stood at $23.6 billion, 7% growth, and the parks unit alone generated $8.88 billion - a 6% jump. These strong results reinforce why Disney could soar in 2025, attributed to increased visitor traffic at American parks, higher cruise occupancy rates, and increased spending by visitors. Meanwhile, the streaming sector, despite significant profitability improvement, still faces many challenges.

Bottom Line

The Disney stock 2025 forecast is promising, driven by strong growth in theme parks, streaming profitability, and a robust content lineup. With Jefferies upgrade and ongoing investments, Disney is well-positioned for significant upside making it a stock to watch closely this year.

DIS Stock Analysis

Total Score

 

 

score

4.01

 

Strong Sell

Hold

Strong Buy