Disney Q1 EPS Tops Estimates, PT Cut to $130 and AI IP Dispute
Rosenblatt analyst Barton Crockett cut Disney’s price target to $130 from $139 while retaining a Buy rating after a first-quarter EPS beat and management’s measured commentary. Disney reaffirmed double-digit full-year EPS growth but forecast Q2 segment slowdowns with a back-end loaded recovery and pursued legal action against ByteDance’s AI model.
1. Rosenblatt Reduces Price Target
On February 3, Rosenblatt analyst Barton Crockett lowered Disney's price target to $130 from $139 while maintaining a Buy rating, citing management’s lackluster commentary despite a strong first-quarter earnings beat.
2. Q1 Earnings Beat and Guidance Outlook
Disney delivered first-quarter EPS above market expectations, reaffirmed double-digit EPS growth for the fiscal year and projected slower segment growth in Q2 with a back-end loaded recovery in the second half.
3. Cease-and-Desist Over AI Training
On February 13, Disney issued a cease-and-desist letter to ByteDance for allegedly using its copyrighted content to train the Seedance 2.0 AI video model, prompting ByteDance to limit certain platform features by February 17.