Webtoon stock price target raised to $23 by Evercore ISI on Disney deal

Published 13/08/2025, 11:26
Webtoon stock price target raised to $23 by Evercore ISI on Disney deal

Investing.com - Evercore ISI has raised its price target on Webtoon Entertainment Inc (NASDAQ:WBTN) to $23.00 from $20.00 while maintaining an Outperform rating following the company’s second-quarter earnings report. According to InvestingPro data, analyst targets for WBTN range from $9 to $20, with the stock currently trading at an attractive Price-to-Book ratio of 0.83.

Webtoon shares jumped approximately 40% in after-hours trading, primarily driven by the announcement of a major distribution partnership with Disney rather than the mixed earnings results. While the company posted a net loss of $172.57 million in the last twelve months, InvestingPro analysis shows strong financial health with a current ratio of 2.63, indicating solid short-term liquidity.

The Disney deal will bring 100 blockbuster comics from Disney, Marvel, 20th Century Studios, and Star Wars to a new dedicated section of Webtoon’s English-language app, significantly boosting the platform’s content offerings.

Evercore ISI noted that the partnership follows standard revenue-sharing economics similar to Webtoon’s other content partnerships, with no unusual financial terms reported in the arrangement.

The research firm described the Disney partnership as a "game changer" that substantially improves Webtoon’s chances of replicating its success from Korea and Japan (where it reaches 50% and 20% of the population, respectively) into North American and European markets.

In other recent news, Webtoon Entertainment reported its second-quarter 2025 earnings, revealing a revenue of $348.27 million. This figure surpassed the forecasted $341.2 million, marking a positive revenue surprise of 2.07%. The company’s strong performance was attributed to its English language web comic app, which drove both revenue and adjusted EBITDA beyond prior guidance and market expectations. Following this earnings report, Goldman Sachs raised its price target for Webtoon Entertainment from $11 to $15, maintaining a Buy rating on the stock. These developments highlight the company’s robust financial health and the confidence analysts have in its future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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