Needham Maintains Buy Rating on The Walt Disney Company (DIS) Stock

The Walt Disney Company (NYSE:DIS) is one of the Reddit Stocks with the Highest Upside Potential. On August 7, Laura Martin from Needham maintained a “Buy” rating on the company’s stock, with a price objective of $125.00. The analyst’s rating is backed by several positive developments for The Walt Disney Company (NYSE:DIS) in Q3 2025. Notably, the company’s diluted EPS rose to $2.92 from $1.43 in Q3 2024, and adjusted EPS went up by 16% for Q3 2025 to $1.61 from $1.39 in Q3 2024.

Needham Maintains Buy Rating on The Walt Disney Company (DIS) Stock

A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.

Furthermore, The Walt Disney Company (NYSE:DIS)’s direct-to-consumer segment demonstrated profitability with an operating income of $346 million. The company’s Experiences segment saw operating income of $2.5 billion, reflecting a rise of $294 million compared to Q3 2024. The operating income in the quarter demonstrates a ~$40 million benefit from the timing of the Easter holiday, and a ~$30 million impact from pre-opening expenses at Disney Cruise Line.

Despite the concerns, the positive financial performance and strategic initiatives, like asset swap involving ESPN and the NFL Network, as well as the timely launch of ESPN’s flagship service, supported the analyst’s rating. Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Other top Q2 contributors included The Walt Disney Company (NYSE:DIS), Ferguson Enterprises and Capital One Financial. Diversified media and entertainment company Walt Disney benefited from easing macroeconomic concerns, primarily in its parks division, which is particularly sensitive to the economic backdrop.”

While we acknowledge the potential of DIS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DIS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.