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Disney Stock Rides High as Analysts Say ‘Profits Are Back & Bigger than Ever'

Disney Stock Rides High as Analysts Say ‘Profits Are Back & Bigger than Ever'

Business Insider11 hours ago
Disney stock (DIS) has surged to new 52-week highs, with Jefferies upgrading the stock to Buy and pointing to strong tailwinds in parks, streaming, and cruises. Investor excitement is growing ahead of a packed July calendar, which includes fresh Marvel releases, new cruise rollouts, and the company's earnings report. Web traffic for Disney+ is soaring, and theme park bookings are beating expectations.
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Disney Stock Breaks Out as Technical Signals Flash Green
The technical setup looks strong. Disney stock is consolidating near $124, and analysts are watching for a breakout. The IBD Composite Rating has climbed to 94 out of 99, and the stock's relative strength line has hit fresh highs. It's trading well above key moving averages, signalling momentum that could carry into earnings.
Jefferies Analyst Sees $144 Price Target and Strong Growth Ahead
James Heaney, CFA at Jefferies, upgraded Disney to Buy with a new price target of $144. His bullish case is based on accelerating revenue in the Parks and Experiences division, cruise expansion with two new ships, and improving Direct-to-Consumer (DTC) margins. Heaney expects the cruise business alone could add over $1 billion in revenue.
Meanwhile, Disney's content slate including Zootopia 2 and Avatar 3, alongside ESPN's DTC launch, creates further upside. Heaney is a 5-star TipRanks analyst with a 20.2% average return and a 51% success rate.
Bank of America Adds Fuel With $140 Target
Jessica Reif Ehrlich at Bank of America Securities also maintained a Buy rating with a $140 price target in a report issued June 27. Her optimism is rooted in sequential improvements in the Parks and Experiences division, led by two new cruise ships expected to drive long-term revenue gains.
She also flagged strength in the sports advertising sector and ongoing margin improvements in the DTC business. Ehrlich sees Disney's 2025 earnings per share guidance as realistic, with the parks segment expected to provide the foundational strength while DTC investment continues.
Despite some box office underperformance, the analyst expects profitability to rise, supported by upcoming releases and a strengthened content pipeline.
Investor Exit Draws Headlines but Not Panic
Former Marvel chairman Ike Perlmutter reportedly sold his entire Disney stake, calling for a stock decline. But his exit hasn't stopped the rally. Analysts say recent moves suggest institutional support is still strong, and technicals remain bullish.
Is Disney Stock a Good Buy?
Analysts are firmly in Disney's corner. Out of 19 Wall Street analysts covering the stock over the past three months, 16 rate it a Buy, while three recommend Hold. No analysts suggest selling the stock.
The average 12-month DIS price target is $129.24, implying a 4.66% upside from the current price of $123.49.
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