Walt Disney’s (NYSE: DIS) stock reached a peak of $200 in early 2021. Since then, the share price has continued sliding down to pre-pandemic levels, barely holding above $85.
This can be attributed to the recent controversies, including partnering with a controversial TikTok influencer and replacing the Seven Dwarfs from the classic fairytale with a mix of non-Dwarf characters.
Wall Street analysts, however, believe the worst is over and we may see a move higher within the next 12 months.
The average analyst target price sees a 26% gain
Analyst consensus at TipRanks is a ‘moderate buy’ for the Walt Disney stock based on 19 analysts in the last three months. Their average price target is $110, 26% higher than the current price of $87.
Disney recently reported its Q3 earnings this year. The results were mixed, ranging from a 7.4% decline from the previous quarter in subscribers to their Disney+ streaming service to a 13% increase in revenue from its parks, experiences, and products divisions.
DIS stock technical analysis
Unlike the analysts’ optimism, the Disney stock price chart paints a different picture.
The stock price has formed a descending triangle pattern since August 2022. This is a bearish pattern, meaning the price typically breaks out on the lower side of the triangle.
In this case, a break of the $85 support level would open the way to $50 as the next price target.
The $85 level has proven to be a strong support price, meaning a strong catalyst is required to push the price lower.
DIS is down 2% year to date, underperforming the S&P 500’s 16% return during the same period.
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