Barclays has revised its outlook on several major media and entertainment companies, citing strong advertising performance in traditional television, particularly in sports, as a potential source of upside for legacy media firms.
The brokerage observed that advertising spend remained solid in the second quarter of 2025, even as streaming ad pricing continued to lag.
While streaming platforms face ongoing challenges in pricing power, legacy TV networks with live sports content appear to be benefiting from resilient demand.
Barclays highlighted this trend as a key differentiator for companies with established broadcast assets, positioning them for stronger near-term ad revenues compared to streaming-first players.
Disney, Warner Bros. Discovery, and Paramount see upgrades
Among the beneficiaries of the updated outlook is Walt Disney Co. (DIS), whose price target was raised to $140 from $120.
Barclays attributed this increase to Disney’s robust content pipeline, various growth catalysts, and a positive outlook on the company’s upcoming leadership transition, with CEO Bob Iger expected to hand over the reins in 2026.
The firm sees these factors as supportive of both near-term momentum and long-term strategic clarity.
Warner Bros. Discovery (WBD) also received an upgrade, with Barclays lifting its price target to $13 from $9.
Although the brokerage noted that WBD’s advertising performance has lagged behind peers, it sees potential upside tied to the company’s post-split valuation.
The media conglomerate has been in the midst of a restructuring process that could unlock shareholder value, particularly if broader advertising trends improve in the second half of the year.
Paramount Global (PARA) was not assigned a new price target, but Barclays expects the stock to “continue to trade higher” than its intrinsic value.
This expectation is largely driven by the cash component in the company’s pending deal with Skydance Media, which appears to be supporting share prices despite fundamental headwinds.
Music and streaming stocks also see bullish revisions
Outside of traditional media, Warner Music Group (WMG) saw its price target increased to $30 from $28. Barclays cited upcoming September music releases from high-profile artists such as Ed Sheeran and Cardi B as potential revenue drivers for the label.
Spotify (SPOT) received a more significant boost, with Barclays raising its price target to $800 from $650.
The brokerage believes Spotify is well-positioned to benefit from regulatory changes, particularly upcoming rule modifications to Apple’s App Store that could improve Spotify’s user acquisition and subscription dynamics.
Finally, Netflix (NFLX) also saw a modest price target increase — from $1,000 to $1,100 — signaling continued confidence in the company’s subscriber momentum and global content strategy, despite broader challenges in streaming ad pricing.
According to Barclays, the legacy broadcast strength and targeted strategic shifts offset softness in certain segments like streaming ads.
The firm’s revised targets suggest optimism for companies that are either leaning into strong content cycles or adapting effectively to evolving regulatory and consumer environments.
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