Benchmark reiterated its buy recommendation on The Walt Disney Company on Monday, lifting the price target to $115 from the current share price of $108.10. The firm cited mixed box office results over the summer, alongside ongoing legal and regulatory challenges.
Summer releases included both high-grossing titles and notable underperformers. Toy Story 5 led domestic earnings with $1.12 billion, while The Mandalorian and Grogu generated $345 million and The Devil Wears Prada 2 earned $692 million. Moana contributed $308 million. In contrast, The Dog Stars, a Ridley Scott-directed release from Disney and 20th Century, opened to $8 million across 3,330 theaters, placing fifth at the box office. The film’s $80 million-plus production budget and weak critical reception—40% on Rotten Tomatoes and a C+ CinemaScore—suggested significant losses, described by analysts as one of the biggest box office failures in Scott’s career.
Disney is also expanding its video game business, with titles such as Kingdom Hearts IV and Marvel’s Wolverine in development and a strengthened partnership with Epic Games.
Regulatory scrutiny has intensified. Disney filed a lawsuit to block an early review by the Federal Communications Commission (FCC) of licenses for eight ABC television stations, arguing the process is politically motivated. The U.S. Department of Justice opposed Disney’s request for an urgent hearing. FCC Chairman Brendan Carr stated that no decision has been made regarding potential license revocation, though the commission is investigating Disney’s diversity, equity, and inclusion practices. The dispute has raised concerns over content regulation and alleged targeting of Disney’s editorial stance.
Benchmark’s reiteration follows recent market activity in which Disney shares traded below the $115 target, with InvestingPro Fair Value analysis indicating undervaluation. The firm’s decision reflects a balance between summer box office volatility and Disney’s broader strategic initiatives in entertainment and gaming.
