Deutsche Bank analysts raised their price target for Walt Disney (NYSE:DIS) shares from $130 to $135, maintaining a Buy rating on the stock. According to the analysts’ note, the firm foresees an attractive opportunity for Disney in the second half of 2023, with several factors poised to drive stock appreciation in the back half of the company's fiscal year.

The firm anticipates an inflection point for earnings growth in Q3, propelled by year-over-year margin improvement in DMED (Entertainment) and continued strong revenue growth and margin expansion in DPEP (Parks & Consumer Products).

The analysts also expect cost reduction initiatives to drive loss improvement in Streaming during the June and September quarters, resulting in smaller year-over-year operating income declines in Linear Networks.

Overall, the analysts estimate that 2023 will be the trough for DMED profit, as Linear Networks operating income is projected to decline by more than Streaming operating loss improves, despite 2022 being the peak year for Streaming losses.