Wolfe Research Names Disney and Fox as Standout Stocks in the Media Sector

According to Wolfe Research's assessment, the most interesting opportunities in the media sector at this stage are linked to Disney and Fox. The investment firm assigns both companies an "Outperform" rating.

Disney's stock price target is $131, which is approximately 21% higher than its current price. According to Wolfe Research's forecast, Disney's earnings per share will grow by more than 10% annually over the coming years.

Analysts cite the high number of pre-sold tickets for "Avengers: Doomsday" and cost reductions as positive factors.

For Fox, the price target is $93, implying growth of approximately 36%. Wolfe Research believes that a possible merger between Fox and News Corp is unlikely and, at this stage, does not appear particularly beneficial from a business standpoint either.

One positive factor for Fox is the deal signed with Roku. Analysts believe this will help the company in its long-term growth. Meanwhile, several positive assessments of News Corp have been published recently, including a credit rating upgrade by S&P Global Ratings.

Source: Investing.com