Jefferies Analyst Gives Disney the Thumbs Up, Slaps Bigly Upgrade on Shares (16% Upside)

Well it looks like Disney is back in Wall Street’s good graces, which is saying something considering the last five years have been a masterclass in corporate self-sabotage. And yet, Jefferies analyst, James Heaney, just upgraded the stock to “Buy,” slapped a $144 price target on it (16% upside from current levels), and basically told everyone still holding a grudge from the Bob Chapek era to get over themselves and buy the f*cking mouse. 

(Source: Giphy) 

So what in the magic spell happened here? Well, for starters, Disney’s parks and cruise businesses simply won’t die. No matter how many times economists scream “recession” into the void, people are still lining up to pay $200 to sweat and drink $20 cokes with a straight face. More specifically Jefferies is convinced there’s “limited risk” of a second-half slowdown, which feels a lot like saying there’s limited risk of food poisoning at a Golden Corral. Meanwhile, the cruise business is up bigly big as it’s currently on track to haul in over a billion dollars in 2026. 

(Source: Wall Street Pit) 

Second, direct-to-consumer margins are finally not a war crime. Disney+ was hemorrhaging cash like a casino ATM, but now management is promising margins will go from zero to 13% by 2028. But that’s bold considering anyone who is not Netflix is stuck in the meat grinder. Meaning, while Jeffereis is ready to bet the farm, I’ll just have to believe it to see it. 

Additionally, the content slate that includes Zootopia 2, Avatar 3, ESPN’s streaming launch continues to amplify its IP status. Jefferies is betting the box office will be printing money again, presumably because they have some inside information that these new projects don't have any wokeness attached to them (think: Snow White bomb). As for the valuation, Disney is up 11% YTD (up 25% over the last twelve months) and Jefferies thinks there’s still plenty of room to run, especially as the market keeps drooling over “brand ecosystems” and diversified revenue streams.

(Source: Giphy) 

Of course, the only thing less certain than Disney’s next box office hit is who takes over after Bob Iger finally rides off into the sunset (or, more likely, gets forcibly ejected by the board after the 12th extension). But for now, Wall Street is in full “happily ever after” mode, and the only thing more delusional than shorting Disney right now is thinking I could take my family of four to the Magic Kingdom without taking out a second mortgage to fund it. 

But alas, Jefferies is bullish, and Disney’s IP hoarding continues to fuel the juggernaut that is the House of Mouse… and right now the market agrees. In the end, it’ll be interesting to see what other analysts hop on this bandwagon, but for now, Disney is looking up and to the right for the time being. Meaning, keep your eyes on the stock and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Disney and Netflix as mentioned in the article.