Walt Disney (DIS) stock has fallen 7.6% over the past month, but is nearly flat over the last year with a modest 0.2% decline, and has inched up 0.4% in the past week. Wall Street’s analysts are strongly bullish, forecasting solid upside for $DIS over the next twelve months with a consensus price target of $133.71 versus the last close of $96.38.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Analyst Ric Prentiss of Raymond James has upgraded Disney to Buy from Market Perform, setting a price target of $115, which signals notable upside from current levels. He believes the recent macro pressures and weaker international park visitation actually create an attractive entry point, arguing that Disney shares look historically cheap even under several more pessimistic scenarios.
Prentiss notes that Disney’s Experiences division, including parks and cruises, still makes up 57% of expected operating income in FY26, but sees streaming as the main growth engine through FY28. He points to Disney’s Entertainment SVOD and direct-to-consumer business as delivering about $3 billion in incremental operating income by FY28 versus FY25, compared with around $2 billion in additional operating income from Experiences.
The analyst stresses that this is a back-half FY26 story and not a short-term bet on the upcoming F2Q26 earnings report, which could be flat or slightly down year over year. He expects the second half of FY26 to look much stronger as Disney benefits from new cruise ships, easing competition from Epic Universe, Paris’s Frozen expansion, easier content and linear TV comparisons, and more favorable sports rights costs.
On valuation, Prentiss highlights that Disney trades at roughly 15 times next-twelve-month earnings and about 13 times next-twelve-month free cash flow, a discount to its 10-year medians. He bases his $115 target on 16 times free cash flow, implying about 14 times earnings, and still sees Disney delivering double-digit EPS growth through FY27 and beyond despite near-term macro and parks headwinds. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.