Disney Stock Caught a Price Target Upgrade. Three Things to Watch Ahead of Earnings.

The temporary suspension of Jimmy Kimmel Live! may have impacted Disney subscriber numbers, Citi analyst Jason B. Bazinet said. (PATRICK T. FALLON/AFP via Getty Images)

Key Points

• Citi analyst Jason B. Bazinet raised Disney’s price target to $145 from $140, implying a potential 31% rally from current levels.
• Investors should monitor Disney+ subscriber additions due to potential churn following the temporary suspension of Jimmy Kimmel Live!.
• Analysts will look for comments on media industry consolidation and footfall trends at Disney’s parks after Comcast expanded its offerings.

Disney stock has been struggling lately, but earnings are looming and subscriber numbers for Disney + and consolidation are among three key things to watch.

The earnings could give it the opportunity to rebound, according to Citi analyst Jason B. Bazinet who raised his price target for the House of Mouse to $145 from $140 in a research note published on Friday. The new target implies shares can rally about 31% from their current level.

It may only be an incremental adjustment, but Bazinet’s note also laid out the key issues investors will be focusing on after an eventful quarter for the entertainment giant.

Wall Street should keep a close eye on subscriber adds for the Disney+ streaming platform, as churn may have been higher than usual due to the controversy caused by the temporary suspension of Jimmy Kimmel Live! last month, the analyst wrote. Disney pulled the talk show off air from Sept. 17 to Sept. 22 after host Jimmy Kimmel’s comments about the assassination of Charlie Kirk sparked a fierce backlash from conservatives.

Bazinet will also be watching to see if Disney executives comment on recent media industry consolidation, with Paramount Skydance on a dealmaking spree. The analyst also told investors to look out for footfall trends for Disney’s parks in Orlando, because rival Comcast expanded its own offering when it opened Epic Universe in May.

Disney stock could do with a boost. It’s dropped 8.4% over the past three months, dragged down worries about consumer spending power, which could weigh on demand for its theme parks and streaming service.

Write to George Glover at george.glover@dowjones.com