10:55 AM EDT, 08/05/2024 (MT Newswires) -- Walt Disney's ( DIS ) parks business merits "a more cautious view" in fiscal 2025, though its studios are outperforming, Morgan Stanley said in a note e-mailed Monday.

The media and entertainment giant's shares have dropped 23% since its fiscal Q2 results in May, according to Morgan Stanley. The sell-off likely factors in "understandable concerns" over the macroeconomic backdrop, especially for Disney's ( DIS ) theme parks, the brokerage said.

"We see this correction as a buying opportunity in shares, with only 10% downside to our bear case at this point," Morgan Stanley said. "We see Disney's ( DIS ) parks and resorts business as uniquely attractive for investors, a key driver of long-term earnings growth and supportive of a premium multiple for [Disney ( DIS )] shares."

The brokerage said the company's studios are outperforming. "Content strength is key to shares over time and should benefit Disney+ revenue growth along the way," according to the note.

Morgan Stanley reduced its price target on the Disney ( DIS ) stock to $110 from $130 while maintaining its overweight rating.

The company is scheduled to report its fiscal Q3 results Wednesday.

Disney ( DIS ) shares were down 1.4% in recent trading amid a weak broader market.

Price: 88.29, Change: -1.28, Percent Change: -1.43