Disney’s Winning: Inside Out 2 Shatters Records and Goldman Sachs Issues a Buy Rating

Disney’s Inside Out 2 becomes the highest-grossing film of the year while Goldman Sachs upgrades Disney stock to a Buy with a $125 price target.

Today, Disney ($DIS) is winning the summer with exciting news! Goldman Sachs just gave Disney a shiny new Buy rating and a price target of $125 per share. This stock upgrade comes as Disney/Pixar’s Inside Out 2 smashes box office records, becoming the highest-grossing film of the year.

Inside Out 2 had a monster second weekend, earning the seventh-highest second weekend in box office history. It’s no surprise that this Pixar sequel dominated the top spot. To date, Inside Out 2 has raked in $355 million in North America and $724 million globally.

Goldman Sachs analysts believe Disney’s robust content pipeline is a key driver for mid-term growth. They note that Disney’s competitive moats and high growth visibility give the stock more room to run. This bullish stance comes despite the media industry still being in flux, with a significant shift toward direct-to-consumer growth.

Disney isn’t the only company catching Goldman’s eye. They also initiated coverage on Comcast ($CMCSA) and Fox ($FOX), highlighting the potential for growth in adjacent businesses less affected by cord-cutting. For Comcast, Goldman sees a 14% upside, and for Fox, a 22% upside.

The media landscape is changing rapidly. Traditional linear aspects of the business are declining, but companies like Disney are focusing on profitable streaming growth. Goldman Sachs is optimistic that Disney can manage this transition effectively, especially with its vast content library and strategic bundling efforts.

In the face of these industry shifts, Disney stands out as a strong player. Their commitment to high-quality content continues to pay off, both at the box office and in the stock market. With Inside Out 2 breaking records and a positive outlook from Goldman Sachs, Disney’s future looks bright and full of promise.

Disney shares opened the day at a high of $103.68 per share. However, shares in the entertainment operator are currently trading down fractionally at $102.00, mostly flat with a slight increase of $0.02 (+0.02%).