Overview
- Raymond James upgraded Disney to Outperform with a $115 target, citing a double‑digit year‑to‑date drop that it views as an entry point and the growing role of streaming in earnings.
- Needham’s Laura Martin kept a Buy with a $125 target, arguing Disney trades at about 13.7 times forward earnings like cruise lines rather than media peers such as Netflix.
- Recent results beat forecasts as EPS hit $1.63 on $25.98 billion in revenue, with streaming profit rising 72% to $450 million and management guiding to roughly a 10% margin this year.
- Wells Fargo maintained an Overweight rating but highlighted pressure from ESPN’s move to a direct‑to‑consumer model and weaker cash flow, including a $2.3 billion outflow last quarter.
- OpenAI’s cancellation of work on a Sora video tool ended a proposed $1 billion, three‑year partnership with Disney, adding uncertainty to the company’s AI and tech plans.