Redburn Atlantic has upgraded Walt Disney’s stock from hold to buy, raising its price target from $100 to $147, indicating a potential 32% upside. After a 23% gain in 2024, Disney shares experienced a slight increase in premarket trading post-upgrade. Analyst Hamilton Faber believes Disney is approaching a critical inflection point, as the company’s structural challenges are diminishing. With streaming profits expected to surpass declines in linear TV, Faber sees the stock possibly trading at a 10% premium to the S&P 500. He highlights the strong performance of successful content releases, including “Deadpool & Wolverine” and “Inside Out 2,” which bolster his optimism regarding Disney’s content strategy and streaming potential. Faber forecasts a subscriber base of 21 million for Disney’s direct-to-consumer ESPN by 2028, with minimal additional costs. Additionally, Disney’s three-year guidance of high-single-digit EPS growth for FY25 and double-digit growth in subsequent years enhances investor confidence. The majority of analysts remain positive about Disney, with 24 out of 35 rating it as a buy or strong buy, and the average price target suggesting an 11% upside.
