Walt Disney (DIS) PT Lowered to $125 at Wells Fargo

Wells Fargo analyst Steven Cahall lowered the price target on Walt Disney (NYSE: DIS) to $125.00 (from $146.00) while maintaining a Overweight rating.

The analyst comments "We lay out the case for DIS to return to its old biz model of producing vs. distributing. We think it could add ~40% to the stock price by de-risking EPS & tightening mgmt's focus to IP & Experiences. We tweak ests into F3Q'26 & our a new PT = $125. What if DIS exited streaming in favor of the old licensing model? We think Sony is getting >$1bn annually for its pay 1 movie deal. DIS commands 3x the global box office implying nearly $4bn for global pay 1 alone. Add in pay 2 + DIS's 1-of-a-kind IP library & we think DIS could generate >$15bn in annual licensing revs, which represents ~8% CAGR on DIS+21CF licensing revenue prior to the '19 pivot to streaming. Our >$15bn est is ~2x WBD's Studio segment. DIS had ~30% Studio OI margins in FY'18."

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