Disney (DIS) shares are in the green today following news the entertainment and media giant has agreed to pay nearly $439 million to take full control of Hulu.
Investors are cheering the announcement since they had expected Disney to pay significantly more for Comcast’s (CMCSA) stake in Hulu. Plus, this payment wouldn’t pressure the company’s prior guidance for fiscal 2025.
Including today’s gain, Disney stock is up some 45% versus its year-to-date low set in early April.
Loop Capital Recommends Buying Disney Stock
According to Loop Capital analyst Alan Gould, taking full control of Hulu could unlock significant further upside in Disney shares.
Gould reiterated his “Buy” rating on the entertainment conglomerate in a research note on Tuesday, and raised his price target to $130, indicating potential upside of another 10% from current levels.
Loop's estimated that the fair value of Hulu “implies 3.3x revenue and just under $500 per subscriber for the SVOD service.”
Note that Disney is a dividend stock that currently yields 0.84%, which makes up for an additional reason to have it in your investment portfolio in 2025.
Jim Cramer Also Remains Bullish on DIS Shares
Among other notable bulls on Disney stock is famed investor and former hedge fund manager Jim Cramer.
Cramer recommends loading up on DIS shares here as the NYSE-listed giant is “finally getting its feet right.” He has immense confidence in the leadership of CEO Bob Iger who’s doing things “I like a lot.”
These include the company’s recently disclosed plans of building a new theme park and resort in Abu Dhabi that, according to its chief executive, will include a lot of new experiences.
What’s the Consensus View on Walt Disney in 2025?
Other Wall Street analysts agree with Cramer’s bullish view on Disney shares as well.
The consensus rating on DIS stock currently sits at “Strong Buy” with the mean target of about $126 indicating potential upside of more than 6% from here.
