Goldman Sachs Lowers Disney Stock Target to $140 Amid Ongoing Expansion

Goldman Sachs has lowered its price target on Disney's stock to $140 from $144 while maintaining a Buy rating. The current trading price is $106.15, which is below both Goldman's target and InvestingPro's Fair Value of $129.67. This suggests that the stock may be undervalued.

The firm forecasts fourth-quarter fiscal 2026 earnings per share of $1.73 compared to Visible Alpha consensus of $1.66. Goldman Sachs expects segment EBIT of $4.93 billion versus consensus of $4.85 billion and revenue of $25.43 billion for the quarter. The company's ongoing expansion of its cruise fleet, theme park capital investments, theatrical pipeline, and planned Spring 2027 integration of merchandise and interactive features within Disney+ are seen as strategic initiatives supporting long-term earnings growth.

Near-term headwinds include streaming advertising softness, growing investments in localized original content, and softer attendance at Asian theme parks. Goldman Sachs estimates a 13% EPS compound annual growth rate from fiscal 2025 through fiscal 2028. The price target adjustment reflects slightly lower EBITDA expectations.