Guggenheim Boosts Disney Price Target to $140, Sees Stronger Profit and DTC Momentum

Guggenheim raised its price target on Walt Disney (NYSE:DIS) to $140 from $120 while maintaining a Buy rating, citing improved operating forecasts, resilient theme park trends, and a clearer path to direct-to-consumer (DTC) growth.

The firm updated its model to reflect several positives, including lower operating expenses at Linear Networks thanks to the Star India divestiture and ongoing cost efficiencies. While recent films like Elio and Thunderbolts underperformed modestly at the box office, Sports advertising revenue is tracking better than expected, buoyed by overall audience growth during the NBA Finals.

Meanwhile, Disney’s Experiences division continues to show resilient attendance and travel demand, supporting earnings stability.

Guggenheim highlighted Disney’s upcoming full ownership of Hulu—secured with a $439 million payment to Comcast due by July 24—as a catalyst for advancing its unified DTC strategy. This includes integrating Hulu with Disney+ and the upcoming ESPN streaming service, creating new bundling opportunities to boost revenue.

The analysts now forecast fiscal Q3 segment operating income of $4.5 billion, up from $4.4 billion previously, lifting full-year segment operating income to $17.7 billion—slightly ahead of the $17.65 billion Street consensus. The updated outlook reinforces Disney’s potential for sustainable profit growth and stronger competitive positioning in streaming.