Disney's Growth Engines Could Drive Stock Higher 'If We Avoid A Recession,' Analyst Says

by Chris Katje Benzinga Staff Writer

Zinger Key Points

Disney's theme parks and streaming segments are highlighted as ways to boost the stock price by an analyst.
Upcoming launches of new cruise ships and the new ESPN streaming platform could be catalysts.
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An analyst said in a new investor note that media giant The Walt Disney Company DIS could see its shares go higher due to its strength in theme parks and streaming.

The Disney Analyst: Rosenblatt analyst Barton Crockett maintained a Buy rating on Disney stock while raising the price target from $135 to $140.

The Analyst Takeaways: Crockett said theme parks and streaming could be keys to Disney stock going higher, while looking at other strong company sectors like experiences, advertising, ESPN and movies.

"So much is strong right now, that if we avoid a recession we believe estimates can move up, and the multiple, too," Crockett said.

The analyst said concerns that Epic Universe could slow down Disney theme park traffic in Florida have been minimized. Crowds have been "muted" at Epic since the May 22 opening, and Disney has indicated that bookings for Walt Disney World are up year over year.

Crockett said Walt Disney World bookings were up 4% year-over-year for the third quarter and up 7% year-over-year for the fourth quarter, based on Disney's commentary from the second quarter earnings call. The analyst also highlights the company's cruise ship segment, which is adding more ships and revenue opportunities later this year.

Crockett said theme park spending will likely expand as long as the country avoids a recession.

"Our expectation is that Trump will focus on winning 2026 midterms, and stop tariff policy actions short of clearly sparking a recession."

For Disney's sports segment, Crockett sees NBA Playoff viewership as strong along with strong early WNBA viewership that could help the company's ESPN segment and advertising revenue.

The analyst assumes Disney's ESPN Unlimited streaming platform will debut for $30 a month before the football season. Crockett said the key will be to try to up-sell the 24.1 million ESPN+ subscribers who are paying $12 a month for the new service. The analyst predicts two million subscribers for ESPN Unlimited in the first year and three million subscribers in the second year.

Crockett highlights Disney's streaming strength with subscription prices increasing and advertising opportunities increasing. The analyst predicts Disney's DTC operating income "can go parabolic," with a prediction of going from $143 million in fiscal 2024 to over $1.1 billion in fiscal 2025 and over $2.2 billion in fiscal 2026.

"Disney is the most advanced of media conglomerates in transitioning its TV audiences to streaming."

Crockett said theme parks, streaming and movie success can help offset any concerns about the company's linear networks.

DIS Price Action: Disney stock is up 1.3% to $114.50 on Tuesday versus a 52-week trading range of $80.10 to $118.63. Disney stock is up 2.8% year-to-date in 2025.

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