Morgan Stanley Sees $125 Price Target for Disney Amid Bullish Chart Signals

A recent research note from Morgan Stanley has sparked interest in Disney's (DIS) potential price target. The analysts cited three key factors that could drive a multiple re-rating for the company over the next six to twelve months, leading to a share price of $125.

The first factor is sustained strength in Parks & Experiences, followed by faster monetization of the content flywheel and durable double-digit Disney+ revenue growth coupled with expanding margins.

Morgan Stanley has an Overweight rating on the shares and has been accurate 67% of the time over the past two years, but their average return is only 2.7%. The analysts' success rate is reflected in a low rating of 2.5 stars out of five by TipRanks.

An inverse head-and-shoulders pattern of bullish reversal has been identified on Disney's chart, with an upside pivot of $105. The stock has also taken back its 200-day SMA and is likely to experience a crossover of that same 200-day SMA by the 21-day EMA in short order.