Guggenheim Boosts Disney Target, Highlights Cost Efficiencies and DTC Strategy

Guggenheim raised its price target on Walt Disney (NYSE:DIS) to $140 from $120 while maintaining a Buy rating, pointing to stronger operating leverage, improving advertising trends, and a clearer path to unified direct-to-consumer (DTC) growth.

The analysts cited refined expectations for Disney’s Linear Networks, which are benefiting from cost efficiencies and the Star India divestiture, helping reduce expenses. Although recent films like Elio and Thunderbolts have underperformed modestly at the box office, Sports advertising revenue came in stronger than forecast thanks to robust aggregate viewership during the seven-game NBA Finals series.

Disney’s Experiences segment is also seeing resilient attendance and travel trends, supporting earnings stability. Additionally, the analysts emphasized that Disney’s upcoming full control of Hulu—secured with a $439 million payment to Comcast due by July 24—will enable the company to implement a unified DTC strategy. This includes bundling opportunities with Disney+, Hulu, and the forthcoming ESPN streaming service to drive incremental revenue.

Guggenheim now expects third-quarter total segment operating income (OI) of $4.5 billion, up from $4.4 billion previously, and has lifted its full-year segment OI forecast to $17.7 billion—just ahead of the $17.65 billion consensus. The updated outlook reflects Disney’s improving cost profile and growing momentum in streaming, supporting continued upside potential.