Wells Fargo named Walt Disney the best bet for media stocks in 2026.

Wells Fargo analyst Stephen Cahall named Walt Disney the best investment bet among media companies for 2026. In the past, Cahall has given his preference in this area to Spotify. Now, however, the analyst is betting on the growth potential of theme parks, expanding streaming margins and improving Walt Disney 's box office, Barron's writes.

Cahall has set a $152 target price on Disney stock, implying a potential upside of 36% from current levels. The analyst forecasts double-digit earnings growth for the company in 2026, driven by improved streaming margins and park expansion, Barrons reported .

The analyst also emphasized that Disney's parks and entertainment division posted a 13% year-over-year operating profit growth in the fourth quarter of fiscal 2025 to $1.89 billion, the company reported. Despite competition from Comcast's Epic Universe theme park, which opened in Florida in May 2025 just a few miles from Disney World, Disney park attendance fell just 1% year-over-year in the fourth quarter, Cahall noted.

Wells Fargo also looked at the potential of Disney's cruise business. The company launched the Treasure ship last year, put the Destiny liner into service in November, and the Adventure ship is expected in Asia in March 2026, according to the publication. All of these cruises, Cahall believes, could give Disney's "experiences segment" a boost.

Disney's streaming sector could also get a boost from ESPN (a cable sports channel app), which the company is launching in August 2025, according to Wells Fargo. The analyst wrote that ESPN "could "significantly increase Disney's streaming share and overall viewing time," especially with a focus on sporting events, Barron's wrote. Amid that optimism, however, the company faced a setback: Disney lost its contract to stream the Oscars - starting in 2029, they will be streamed on YouTube after years of airing on Disney's ABC channel, the publication pointed out.

Disney shares are trading at 16.6 times expected earnings for the next 12 months, Barron's points out, noting that this is below their five-year average of 25.1. Shares of Disney's streaming rival, Netflix, are trading at 29.4 times projected earnings, the publication points out.

On December 18, Disney shares added 1.12%. At the premarket on December 19, they lost 0.14%. For all of 2025, Disney's shares have risen only 0.45% - they lag far behind the S&P 500 index, which added 15.4% over the same period, Barrons notes.

Most analysts watching Disney stock maintain an optimistic view of the company's future. According to MarketWatch, 24 analysts recommend buying Disney stock, 7 advise holding, and only one recommends selling.

This article was AI-translated and verified by a human editor