Story
Disney and Fox Named Top Media Picks by Wolfe Research
Wolfe Research has identified The Walt Disney Company and Fox Corp. as its top investment opportunities in the diversified media sector, assigning 'Outperform' ratings to both companies. The firm's analysis points to significant potential upside based on earnings growth prospects and strategic positioning.
Wolfe's Top Media Picks
In a new research note, the investment firm highlighted its preferred stocks, focusing on fundamental business drivers rather than short-term market volatility. The analysis outlined specific price targets suggesting substantial returns for investors.
- The Walt Disney Company (DIS): Maintained an 'Outperform' rating with a price target of $131, suggesting a potential upside of 21.2%.
- Fox Corp. (FOXA): Assigned an 'Outperform' rating with a price target of $93, implying a potential upside of 35.9%.
Disney's Earnings Growth Trajectory
For Disney, Wolfe Research projects sustained, double-digit earnings per share (EPS) growth over the long term. This outlook is supported by expectations that the company will successfully reinvigorate volume growth in its crucial Experiences division.
AdThe firm also noted a potential nuance in future guidance. According to the note, if Disney guides for 8% EPS growth in 2026, the market should interpret this favorably, as it would represent an underlying growth rate of 12% when accounting for the impact of a 53rd week in the fiscal year.
Fox Merger Concerns Overstated
Wolfe Research addressed investor speculation regarding a potential merger between Fox and News Corp., a move previously considered by Rupert Murdoch. The firm stated its belief that such a combination is unlikely to proceed.
Analysts cite several factors for this assessment, including the rejection of a similar proposal by investors in 2022 and the leverage resulting from the pending Roku transaction. Furthermore, Wolfe questioned the deal's "industrial logic," anticipating minimal cross-selling revenue and cost synergies limited to corporate overhead.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.