Disney Outperform Rating with $115 Target Highlights 15× P/E Discount
Raymond James upgraded Walt Disney to Outperform with a $115 target, noting 15× forward earnings and 13× free cash flow versus 10-year medians of 20× and 23×. The analyst expects $3 billion in incremental streaming income by 2028 and H2 fiscal 2026 tailwinds from cruise launches and park expansions.
1. Raymond James Upgrades Disney to Outperform
Raymond James upgraded Walt Disney from Market Perform to Outperform, setting a $115 price target based on a 15× forward P/E and 13× forward free cash flow versus 10-year medians of roughly 20× and 23×. The firm trimmed fiscal 2026–2028 EPS estimates to reflect near-term parks headwinds and macro risks but highlighted second-half 2026 catalysts including two cruise ship launches, lapping of Universal’s Epic Universe, Paris Disneyland’s Frozen expansion and favorable sports rights timing. A central pillar of the bull case is Disney’s direct-to-consumer streaming ramp, projected to generate $3 billion of operating income between fiscal 2025 and 2028.