1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:06/08/2025 22:03:07 GMTDistributed on:06/08/2025 22:03:07 GMT6 August 2025Deutsche BankResearch Rating Buy North America United States TMT Entertainment Company The Walt Disney Company Date Results Parks Revenue&DTC Margins Drive Strong F3Q;Macro Is Key

2、 To WatchKey TakeawaysWe are maintaining our Buy rating and$135 price target.Our 12-month PT implies 20.6x F2026E EPS,as compared to 19.8x F2025E EPS at the current stock price.Disneys Experiences segment continues to perform at a high level,on track to likely beat F2025 guidance for 8%OI growth,des

3、pite whats been a volatile macro environment and incremental competition in Orlando from the opening of Epic Universe on May 22.We think the macro is still a risk if the consumer begins to crack in the coming quarters(recent jobs data might be pointing to this).The cost-driven DTC segment OI beats c

4、ontinued in F3Q,and our F2025 DTC OI estimate is now back to where it was a year ago,at$1.3B,after management raised guidance to$1.3B today.However,Disney+subscriber growth remains relatively slow and,we believe,below its potential.That being said,management announced a rebranding of the companys in

5、ternational general entertainment product(which is part of Disney+)to Hulu(from Star previously),now that Hulu is 100%owned by Disney and Star has been deconsolidated.In addition,and more importantly,management discussed plans to invest more into local content in key international markets in order t

6、o take advantage of the growth opportunity.These actions have the potential to improve Disney+subscriber growth in F2026 and beyond,along with the enhancements Disney is making to the user experience.We expect Disney to focus on larger international markets with a strong affinity for Hollywood conte