Written by Brenda Nakalema

Disney Earnings Impress Wall Street Analysts.

Walt Disney (ticker: DIS) shares gained on in premarket trading on Thursday following analysts’ decision to upgrade their price targets …

Walt Disney (ticker: DIS) shares gained on in premarket trading on Thursday following analysts’ decision to upgrade their price targets after releasing a better-than-expected subscriber number and earnings growth from the company.

Disney stock climbed 8.2% in premarket trading to $121.70. Guggenheim analysts, led by Michael Morris, upgraded Disney stock from Neutral to Buy and increased their price target from $110 to $145, saying, “reflecting our higher estimates and our greater confidence in the sustainability of Parks trends and effectiveness of price increases and cost controls at the company’s direct-to-consumer segment.”

Disney’s direct-to-consumer (DTC) arm, which includes the company’s overseas media business and streaming services, is one of the company’s key divisions.

KeyBanc Capital Markets analysts, led by Brandon Nispel, increased their price target from $131 to $154, saying, “We continue to see DIS as the only asset we want to own in the media.”

They also pointed to its platform of products at its DTC arm. They appreciated its “relatively strong” linear brands and ability to uniquely tie content and experiences together with the theme park business, which they say “should result in revenue and operating income growth that is among the fastest in our coverage for the next several years.”

Although the company provided details of plans to drastically increase the price of the Disney+ streaming service at the end of the year and an advertising-support option, it did scale down its outlook for the future subscriber numbers to a top-end estimate of roughly 245 million subscribers from a top end of 260 million.

Competitor streaming service Netflix (ticker: NFLX) dropped 0.26%, landing at $243.50 in premarket trading. Roku (ticker: ROKU) gained 0.52% to $81.50, and Paramount Global (ticker: PARAA) gained 2.63% to $25.75.