Jefferies Upgrades Disney Stock to Buy, Raises Price Target to $144

Jefferies has upgraded Walt Disney's stock rating from Hold to Buy and raised its price target significantly to $144, reflecting strong optimism about the company's future performance. The upgrade is driven by four key factors: limited risk of a parks slowdown despite competition from Universal's Epic Universe, expected $1 billion-plus revenue uplift from new cruise ships in fiscal year 2026, continued margin expansion in Disney's direct-to-consumer segment, and a strong upcoming content and sports slate including ESPN's streaming launch and major film releases like Avatar 3 and Zootopia 2. Analysts note Disney's failure to grow operating income from 2016 to 2024 but believe this trend will reverse, supported by robust revenue and EBITDA figures. Despite a challenging media landscape, Disney's integrated approach to content, sports, and streaming positions it well against competitors who are restructuring their assets. The company's stock has gained nearly 10% year-to-date with a consensus Buy rating from most analysts, supported by positive trends in parks, cruises, and streaming businesses.