Guggenheim Raises Disney Price Target to $140 on Sports Parks Momentum

Guggenheim has raised its price target for Walt Disney (DIS) to $140 from $120, maintaining a Buy rating and reflecting a positive outlook on the company's financial performance and strategic direction. The increase is driven by stronger-than-expected trends in sports advertising, theme parks, and cost-cutting efforts, along with improved profitability in Disney’s Linear Networks following the Star India divestiture. Despite some underperformance in recent films, this was offset by stronger expectations for other content and resilient attendance and travel trends in Disney's Experiences segment. Disney’s full control of Hulu and the upcoming ESPN streaming launch are seen as key factors positioning the company well to grow digital revenues through more aggressive bundling and a unified direct-to-consumer strategy. Guggenheim now expects Disney’s fiscal 2024 segment operating income to reach $17.7 billion, slightly ahead of consensus estimates. Other analysts broadly support this view, with an average price target of $125.43 and an overall brokerage recommendation of 'Outperform.'