Raymond James raises the target price for Disney(DIS.US), stating that the company's valuation is highly attractive.

LootboxPhobia · 2026-04-02T02:24:49+00:00

After Disney's stock price correction, Raymond James raised its target price to $115, believing that its current valuation is attractive. The analyst predicts that despite short-term performance pressures, future potential positive factors will improve the company's performance, making the risk-reward ratio appealing.

LootboxPhobia

2026-04-02 02:24:49

Abstract generation in progress

Zhitong Finance APP learned that after the stock price experienced a period of pullback, Disney (DIS.US) received an upward adjustment of its target price from institutions. Raymond James set its target price at $115, believing that in the current macro environment, the company’s valuation is particularly attractive.

In its latest report, Raymond James analyst Ric Prentiss stated that the team conducted multiple scenario stress tests on Disney, including various levels of pessimistic expectations. The results showed that even under more severe assumptions, the company’s valuation remained at a historic low.

Data indicates that Disney’s stock price has declined approximately 14% over the past six months, mainly due to its earnings guidance for the fourth quarter of 2025 and the first quarter of 2026 falling short of expectations. Although the market anticipates that the company’s adjusted earnings per share for the second quarter of fiscal year 2026 may be flat or slightly lower year-over-year, analysts believe that several positive catalysts in the second half of the year could significantly improve the company’s performance.

These potential catalysts include the launch of a new cruise ship project, the “Frozen” themed expansion at Disneyland Paris, improvements in the content and traditional television business bases, and favorable impacts from the timing of sports rights costs.

However, Prentiss also emphasized that this target price increase is not based on short-term performance. Considering the pressures faced by the theme park business and macroeconomic uncertainties, the institution has not assigned a “strong buy” rating. Nonetheless, from a risk-reward perspective, the current stock price level remains attractive.

In terms of valuation, Disney’s expected forward price-to-earnings ratio for the next 12 months is approximately 13x, significantly below the five-year average of 27.4x. Based on the $115 target price, there is still about a 19% upside potential from the current stock price.

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