Disney at a Profitability Inflection Point: Buy Rating on Streaming Turnaround, Parks Reacceleration, and Strategic AI & ESPN Optionality

Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating on Walt Disney and keeping the price target at $140.00.

Jessica Reif Ehrlich has given his Buy rating due to a combination of factors tied to Disney’s underlying growth drivers and strategic positioning. Despite some near-term volatility in film and park attendance, she expects Experiences to deliver high single-digit revenue growth, supported by modest gains in per-capita spending and incremental lift from new cruise ships in the second half of the year. She also points to improving comparisons versus last year’s hurricane impacts and the planned launch of the Disney Adventure cruise ship in 2026 as additional supports to the long-term growth profile.

Jessica Reif Ehrlich’s rating is based on her view that Disney is at an inflection point in profitability, particularly in its direct-to-consumer streaming segment, which she expects to transition from a drag to a contributor to earnings growth. She also anticipates a reacceleration in Parks performance over time and sees ESPN as a key multiyear asset, with new opportunities in personalization, sports betting, and multiscreen experiences reinforcing its status as a leading sports platform. While the recently announced OpenAI Sora partnership is not expected to materially impact near-term financials, she views it as strategically important in establishing an early, legally structured role for Disney’s IP in AI-driven content creation. Accordingly, she maintains a Buy rating with a $140 price objective, implying meaningful upside from current levels.