Mon Jun 30 13:30:00 UTC 2025: **Summary:**

Jefferies analyst James Heaney has upgraded Disney’s (DIS) stock from “Hold” to “Buy,” predicting an 18% upside. He cites several factors: reduced concerns about theme park slowdowns, strong cruise business prospects, growing direct-to-consumer margins, and a promising content and sports lineup. Despite industry-wide challenges and a CEO succession in progress, Heaney believes Disney is poised for growth.

**News Article:**

**Disney Stock Poised for Summer Surge, Says Jefferies Analyst**

**NEW YORK, NY** – Disney (DIS) shares are expected to climb this summer, according to Jefferies analyst James Heaney, who upgraded the stock to “Buy” with a price target of $144. This target represents an 18% upside from the current price of $124.84.

Heaney’s bullish outlook is driven by several factors. He anticipates limited impact from competing theme park attractions and the overall economy on Disney’s park performance, projects significant revenue growth from the cruise line business, forecasts substantial margin expansion in the direct-to-consumer (DTC) segment, and sees a strong content and sports pipeline ahead, including the launch of ESPN’s DTC service and highly anticipated films like “Zootopia 2” and “Avatar 3.”

“We upgrade Disney to Buy for four primary reasons,” Heaney wrote. “1) Now see limited risk of a second half parks slowdown from Epic Universe/Macro [economy]; 2) More positive on FY26 cruise [business] upside, Jefferies estimates $1 billion plus revenue uplift; 3) Continued direct-to-consumer margin expansion (0% FY24 to 13% plus by FY28 estimate); 4) View next six months content and sports slate favorably, including ESPN direct-to-consumer launch, Zootopia 2 and Avatar 3.”

The upgrade comes as the media industry faces considerable upheaval, with major players like Warner Bros. Discovery and Comcast restructuring amid the streaming landscape. Disney, however, has maintained its commitment to its existing network structure.

Furthermore, the company is currently searching for a new CEO to succeed Bob Iger. Four internal candidates – Dana Walden, Alan Bergman, Josh D’Amaro, and Jimmy Pitaro – are reportedly under consideration, with a decision expected by year-end.

Despite these challenges, Heaney believes Disney is on the cusp of a turnaround after years of stagnant operating income. The stock jumped 2% in premarket trading following the announcement and is up 10% year-to-date, outpacing the Dow Jones Industrial Average.

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