Benchmark Equity reiterated a Buy rating on Walt Disney (NYSE: DIS) on Tuesday, maintaining a $115 price target and asserting the stock remains undervalued at recent levels.
The firm’s stance follows a summer box office season marked by uneven performance across Disney’s film slate. The Dog Stars, a Disney and 20th Century release, opened domestically to $8 million from 3,330 theaters, finishing fifth at the box office. The film’s $80 million-plus production budget and weak reception—40% on Rotten Tomatoes and a C+ CinemaScore—suggest it will generate significant losses during its theatrical run, analysts noted.
In contrast, several Disney titles delivered stronger results. Moana grossed $308 million on a $250 million budget, while The Mandalorian and Grogu earned $345 million against a $165 million outlay. Toy Story 5 surpassed $1.12 billion globally, and The Devil Wears Prada 2 reached $692 million, both cited as major successes.
Benchmark pointed to Disney’s upcoming December release, Avengers: Doomsday, as a potential offset to summer underperformance. The firm also highlighted Disney’s expanding video game business, including new titles such as Kingdom Hearts IV and Marvel’s Wolverine, alongside a deepened partnership with Epic Games.
Disney’s legal and regulatory challenges continued to draw attention. The company filed a lawsuit against the Federal Communications Commission (FCC) to block an early review of licenses for eight ABC stations, alleging the process is politically motivated. The U.S. Justice Department opposed Disney’s request for an urgent hearing, while FCC Chairman Brendan Carr defended the investigation into Disney’s diversity, equity, and inclusion practices, stating no decision had been made regarding license revocation.
