Investing.com — Walt Disney The Company (NYSE: ) maintains its “Buy” rating and a price target of $140 from BofA Global Research, as it navigates the uncertainties of fiscal 2025. Disney’s first quarter earnings are expected to will face headwinds from pre-opening cruise ship costs, hurricane effects, and soft NBA ratings.

The BofA analyst said “so many unknowns are currently difficult to quantify” as it noted the magnitude of the impact of the LA fires.

“We expect DIS to address the likely costs associated with the closure of Venu in the upcoming earnings call,” the analyst added.

However, BofA sees long-term strength in Disney’s premium intellectual property, iconic theme parks, and the ESPN sports brand. Near-term catalysts include improvements in direct-to-consumer streaming profits, a reacceleration in Parks revenue, and a strong film slate, including Moana 2 and Mufasa: The Lion King.

The brokerage maintained its FY25 earnings per share estimate at $5.36 and sees Disney well-positioned for long-term growth, with significant investment opportunities in DTC and sports broadcasting expansion.