Walt Disney, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Doug Creutz from TD Cowen reiterated a Hold rating on the stock and has a $123.00 price target.
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Doug Creutz has given his Hold rating due to a combination of factors that present a balanced risk‑reward profile for Disney’s shares. The company’s latest quarter broadly aligned with both his and the market’s expectations, with only modest upside on revenue and adjusted earnings per share. While the Experiences segment delivered record operating income driven by stronger‑than‑anticipated domestic park attendance and higher per‑capita guest spending, this strength was offset by weakness elsewhere in the portfolio. The newly combined Entertainment segment saw a sharp year‑over‑year decline in profitability as higher content and marketing investments more than absorbed gains in subscription, affiliate, and theatrical revenues, and advertising trends were pressured by tough comparisons and mix effects.
At the same time, the Sports business came in roughly as expected but still posted a notable drop in operating income, reflecting rising programming costs and softer subscription and affiliate revenues, compounded by temporary distribution disruptions such as the YouTube TV blackout. Management continues to project double‑digit EPS growth for fiscal 2026 weighted toward the back half of the year, which offers some longer‑term promise but depends on execution in an evolving media and streaming landscape. Given the interplay of solid parks performance, pressured media economics, only slightly better‑than‑expected headline results, and earnings growth that is still largely prospective, Creutz sees limited near‑term upside relative to current valuation. As a result, he judges the stock as fairly valued at present, supporting his decision to maintain a Hold recommendation.
Creutz covers the Communication Services sector, focusing on stocks such as Live Nation Entertainment, Take-Two, and Walt Disney. According to TipRanks, Creutz has an average return of 14.9% and a 62.10% success rate on recommended stocks.
In another report released yesterday, TipRanks – xAI also reiterated a Hold rating on the stock with a $122.00 price target.