Analyst Laurent Yoon of Bernstein maintained a Buy rating on Walt Disney, retaining the price target of $129.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Laurent Yoon has given his Buy rating due to a combination of factors that highlight Disney’s strategic positioning and growth potential. One of the primary reasons is the significant improvement in Disney’s Direct-to-Consumer (DTC) segment, which has seen a substantial increase in EBIT and is projected to achieve double-digit margins by FY26. This progress is attributed to Disney’s balanced approach of driving top-line growth through operating leverage and optimizing spending, particularly by leveraging its diverse portfolio of DTC products to enhance bundling and reduce churn.
Despite challenges in subscriber growth, especially in international markets where Disney+ penetration remains low, Yoon sees this as an opportunity for expansion. By investing in international content tailored to local markets, Disney can potentially increase its market share, similar to Netflix’s successful strategy. Although Disney’s content spending is currently lower than Netflix’s, the focus on deliberate and meaningful content investments over time is expected to support long-term growth. Consequently, Yoon maintains an Outperform rating for Disney with a price target of $129.
According to TipRanks, Yoon is a 3-star analyst with an average return of 8.1% and a 77.27% success rate. Yoon covers the Communication Services sector, focusing on stocks such as Netflix, AT&T, and Walt Disney.
In another report released on September 13, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $131.00 price target.