Gronghui, March 26 | Barclays analyst Kannan Venkateshwar upgraded Disney's rating from “neutral” to “overweight” and raised its target price from $95 to $135. Based on the current trading level of around $120 per share, this move means around 15% room for growth. Venkateshwar believes that better-than-expected free cash flow and profit guidelines, along with “tailwinds” such as the Hollywood strike, Hulu merger, and cost cuts, will help boost investor confidence. The stock has been soaring since the beginning of the year, rising more than 30% compared to the 10% increase in the S&P 500 over the same period. But Venkateshwar believes Disney's next phase “may be more impactful because many transformational factors are still ongoing and may reflect more in the data starting next year.” In the best case, faster-than-expected streaming profitability could be beneficial to the stock price. Analysts expect that Disney's streaming business may achieve balance of payments in the first or two quarters before the company's guidelines (fourth quarter of 2024). They believe Disney may achieve better streaming profits than Netflix, and estimate that the potential profit margin is between 25% and 30%.