"Wells Fargo says Disney suffers from 'a lack of excitement' in its narrative, but sees Q2 as a turning point with a new leadership team in place and growth acceleration expected in the second half of 2026."
"Disney's SVOD segment posted $450 million in operating income in Q1 FY2026, up 72% year-over-year, at an 8.4% margin - approaching the company's 10% full-year SVOD margin target."
"The parks and cruise segment delivered record quarterly revenue of $10.006 billion in Q1, with domestic per capita spending up 4%. New capacity from the Disney Destiny cruise ship and upcoming World of Frozen at Disneyland Paris adds durable, inflation-linked cash flow."
Walt Disney's stock has declined 6.49% in the past week and 16.26% year-to-date, currently priced at $93.66. The consensus price target is $134.13, with Wells Fargo's Steven Cahall predicting a target of $148, indicating a 56% upside. Analysts believe Q2 could mark a turning point due to new leadership and expected growth in the second half of 2026. Key drivers include increased streaming profitability and record revenue from parks and experiences, supported by new attractions and cruise offerings.
Read at 24/7 Wall St.
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