Five-star analyst James Heaney from Jefferies has upgraded Disney (DIS) stock to Buy from Hold. Also, he raised the price target to $144 (implies 16.5% upside) from $100, reflecting confidence in the entertainment giant.
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Importantly, the analyst expects Disney’s operating income to grow for the first time in nearly a decade, driven by positive trends across its business segments.
Parks, Cruises, and Streaming Fuel Disney’s Upgrade
Heaney’s upgraded rating is based on four key factors. Firstly, he sees limited slowdown risk in Disney’s parks segment during the second half of the year. This positive outlook comes despite the current macro pressures and the upcoming launch of Universal’s Epic Universe.
Further, Heaney projects major upside for Disney’s cruise business in Fiscal 2026, with revenues climbing over $1 billion due to new ships and expanded itineraries. Also, the Top analyst anticipates continued margin expansion from Disney’s Direct-to-Consumer business, which includes streaming services like Disney+ and Hulu.
Lastly, Heaney views the next six months favorably, highlighting key upcoming releases such as Zootopia 2 and Avatar 3. Moreover, Heaney expects ESPN’s DTC launch this fall to boost average revenue per user.
Is Disney a Buy, Sell, or Hold?
Turning to Wall Street, DIS stock has a Strong Buy consensus rating based on 16 Buys and three Holds assigned in the last three months. At $128.88, the average Disney stock price target implies a 4.25% upside potential.
