Walt Disney ( (DIS) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Walt Disney is drawing renewed interest from Wall Street as analysts frame recent share weakness as a buying opportunity rather than a red flag. The stock is down 7.6% over the past month and roughly flat over the last year, yet it trades at about 15 times next-twelve-month earnings and 13 times expected free cash flow, a notable discount to its 10-year averages.
Raymond James analyst Ric Prentiss upgraded Walt Disney to Buy with a $115 price target, implying solid upside from the recent $96 level. He argues that macro pressures and softer international park traffic have made the stock historically cheap even under cautious scenarios.
Prentiss expects Disney’s Experiences division, which includes parks and cruises and is projected to contribute 57% of operating income in FY26, to remain a profit anchor. However, he sees the real upside coming from Disney’s streaming and direct-to-consumer operations, which he estimates could add about $3 billion in operating income by FY28 versus FY25.
The analyst stresses this is a longer-term “back half of FY26” story, not a quick trade on the near-term earnings prints, which could be flat or slightly weaker. He anticipates a stronger second half of FY26 as new cruise ships launch, competition from Universal’s Epic Universe eases, and content, linear TV, and sports rights costs become more favorable.
Overlaying this optimistic outlook is fresh political noise after Donald Trump attacked ABC News and its parent, Walt Disney, on social media. The criticism could create short-term headline risk and volatility for DIS as investors assess potential brand and advertiser fallout, though analysts see limited long-term impact unless it escalates into regulatory or legal issues.
For broader investors, the Communication Services Select Sector SPDR Fund, which holds Walt Disney among other media names, may see only modest direct pressure thanks to its diversified holdings. Overall, Wall Street’s consensus remains strongly bullish, with an average price target near $133.71 and expectations of double-digit earnings growth through FY27, positioning Disney as a long-term growth play despite near-term noise.