Overview
- Raymond James upgraded Disney to Outperform with a $115 price target, saying the shares look historically cheap after a roughly 13% year-to-date drop.
- Needham kept a Buy rating with a $125 target and argued the stock’s 13.7x forward multiple reflects cruise-line peers rather than media names like Netflix at 28.5x.
- Needham said a higher valuation likely hinges on streaming economics, pointing to higher margins, bundles that cut subscriber churn, and film releases that drive sign-ups.
- Disney’s streaming profitability is climbing, with Entertainment SVOD operating income up 72% year over year to $450 million and guidance for a 10% margin in fiscal 2026.
- Execution worries persist for some investors given new CEO Josh D’Amaro’s parks background and reported strains in partnerships with OpenAI and Epic Games.