Disney's Path to $130: Can the Stock Reach New Heights?
Disney's stock has been stagnant despite its impressive earnings beat in fiscal Q3. The company's revenue rose 6.76% to $25.25 billion, and Experiences operating income climbed 20% to $3.02 billion.
The market is punishing Disney shares even as the operating story improves. The stock is down 5.91% year-to-date, while the last month has shown some life with a 10.43% bounce.
Wall Street's consensus price target is $127.84, implying roughly 17.6% upside from current levels. My model suggests a base case of $120.94 (11.4% upside) and a bull scenario hitting $129.01 within one year.
To reach $130 by 2028, Disney needs to achieve three things: Experiences comps hold up, streaming margins expand toward the mid-teens, and the sports segment stabilizes after the carriage dispute rolls off.