Walt Disney's (DIS) fiscal Q4 is expected to benefit from strong parks, cruise trends and an additional week, BofA Securities said in a note Tuesday.

The analysts said the quarter is set to reflect positive underlying trends with an extra 53rd week. Theme park attendance remains strong globally, with results also benefiting from the addition of two new cruise ships.

Entertainment revenue may be weaker due to Disney's recent theatrical performance, the firm noted. The company is also exploring cost reductions, with savings likely to be reinvested in its direct-to-consumer business, the analysts added.

"In our view, the key driver for near term share performance will be anticipation regarding [fiscal 2027] outlook and the potential to re-accelerate Disney's growth trajectory," the analysts said.

For fiscal 2027, the analysts said their estimates largely remain unchanged at $105 billion in revenue and $7.52 in earnings per share, while operating income expectation is slightly raised to $20.8 billion from $20.7 billion.

BofA reiterated its buy rating and $125 price target on Disney.

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