Wolfe Research Media Stock Rankings
Wolfe Research released an analyst note identifying the most attractive opportunities in the diversified media and music sector, placing The Walt Disney Company and Fox Corp. at the top of its rankings.
Disney is assigned an Outperform rating with a $131 price target, which translates to a 21.2% upside from the current market price. The firm projects double‑digit earnings‑per‑share (EPS) growth to continue over the long term, citing the company’s efforts to revive volume growth in its Experiences division. Analysts note that if Disney guides for 8% EPS growth in the 53rd week of 2026, the market should respond positively, recognizing an underlying 12% EPS growth rate. Recent developments supporting optimism for 2027 guidance include record‑setting presales for Avengers Doomday and at least two waves of layoffs over the past six months.
In parallel, Disney has filed a lawsuit against the Federal Communications Commission (FCC) seeking to block an early license review of eight ABC television stations. Benchmark reiterated a Buy rating on Disney, highlighting the company’s expanding video‑game business and a strategic partnership with Epic Games.
Fox Corp. also receives an Outperform rating, with a $93 price target implying a 35.9% upside. Wolfe Research addresses investor concerns about a potential Fox/News Corp. merger, noting that such a combination is unlikely after investors rejected the premise in 2022 and because the pending Roku acquisition and resulting leverage would likely prevent any merger until after the transaction closes and Fox reduces debt. The firm argues that cross‑selling revenue synergies between Fox and News Corp. would be minimal, with cost synergies limited to corporate overhead. The Roku/Fox merger is viewed as a catalyst for long‑term growth at Fox, making an added conglomerate structure counter‑productive.
Fox Corp. received several analyst updates: JPMorgan upgraded the stock to Overweight, and Wolfe Research raised its price target, both citing the pending Roku acquisition. Conversely, Seaport Global Securities downgraded Fox to Neutral following its fourth‑quarter results.
News Corp. was upgraded by S&P Global Ratings to BBB on the basis of low leverage and strong operating momentum. Morgan Stanley raised its price target after News Corp.’s fiscal 2026 results beat estimates, and the company provided an update on its ongoing $1 billion stock repurchase program.
Overall, Wolfe Research’s rankings emphasize fundamental business drivers and long‑term earnings potential rather than short‑term market volatility, offering investors clear upside estimates for Disney and Fox while outlining the limited strategic rationale for a Fox/News Corp. merger.