On Tuesday, Redburn-Atlantic upgraded Walt Disney stock (NYSE:DIS) from Neutral to Buy, significantly raising the price target from $100.00 to $147.00. The adjustment reflects the firm’s confidence in Disney’s transition from traditional linear TV to a more profitable streaming model.
With a current market capitalization of $201.1 billion and annual revenue of $91.36 billion, Disney maintains its position as a dominant entertainment industry player. InvestingPro analysis indicates the stock is currently trading near its Fair Value.
Analysts at Redburn-Atlantic believe that Disney has reached a pivotal moment where the growth in streaming profits will more than make up for the declines in linear TV revenue. This shift is seen as a key factor in overcoming structural challenges that have previously limited Disney’s share price appreciation. Over the past decade, Disney’s shares have increased by 20%, compared to the S&P 500’s 190% rise.
The firm’s analysts acknowledge Disney’s strong content performance and the solid foundation of its streaming services. They also support the company’s decision to issue three-year guidance. Disney’s stock is expected to gain momentum and potentially trade at a 10% premium to the S&P 500, according to Redburn-Atlantic.
However, there is a note of caution regarding Disney’s fiscal year 2026 Parks outlook, which may be overly optimistic due to upcoming competition from Comcast (NASDAQ:CMCSA)’s new Epic Universe theme park. Despite this concern, the overall sentiment towards Disney’s stock remains positive.
Redburn-Atlantic’s new price target is based on applying a 24x target multiple to Disney’s calendar year 2026 earnings per share, an increase from the previous 19x multiple. This revised valuation underpins the firm’s decision to upgrade the stock to Buy.
In other recent news, Walt Disney has been making significant strides in its business operations. The entertainment giant recently announced a merger with FuboTV (NYSE:FUBO), combining Disney’s Hulu + Live TV service with FuboTV. The merged entity, which will continue to operate under the Fubo name, will be 70% owned by Disney. The merger is expected to bring together over 6.2 million subscribers from North America and launch a Sports & Broadcast service featuring Disney’s top sports and broadcast networks.
Disney has also announced a new animated feature film for the popular series Bluey, scheduled for release in 2027. The movie will be streamed on Disney+ following its global theatrical release. The film promises to deliver the same charm and humor that made the television series globally popular.
Analysts have been keeping a close eye on Disney’s developments. Rosenblatt Securities recently upgraded Disney’s stock price target, maintaining a Buy rating due to confidence in Disney’s growth potential.
Meanwhile, Jefferies initiated coverage on Disney stock with a Hold rating, highlighting strong momentum for Disney’s direct-to-consumer business and an anticipated recovery in the Parks segment’s operating income growth. These recent developments highlight Disney’s ongoing efforts to expand its reach and enhance its services.
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