The Walt Disney Company (DIS): Balancing Near-Term Pressures with Long-Term Growth Drivers

The Walt Disney Company (DIS): Balancing Near-Term Pressures with Long-Term Growth Drivers Neha Gupta Sun, April 12, 2026 at 2:15 PM EDT 2 min read DIS The Walt Disney Company (NYSE: DIS ) is one of the undervalued large cap stocks to buy . On March 24, BofA Securities analyst Jessica Reif Ehrlich reiterated a Buy rating and $125 price target on The Walt Disney Company (NYSE:DIS). The Walt Disney Company (DIS): Balancing Near-Term Pressures with Long-Term Growth Drivers The core of Ehrlich’s thesis centers on Disney’s Experiences segment. This is the largest contributor to the company’s operating income, and it covers Disney’s theme parks, resorts, and cruise lines. For this segment, Ehrlich projects approximately 5% revenue growth in Q2 FY2026, even though the segment faces strong headwinds. Those headwinds, noted Ehrlich, are twofold. On the one hand, there is weak international visitor attendance at domestic parks, and, on the other hand, there are cruise ship pre-opening costs tied to the newly launched Disney Adventure, Disney’s largest-ever cruise ship. The cruise ship entered service in Singapore in early 2026. The analyst also noted that the Experiences segment is facing higher fuel costs. However, on this aspect, the analyst dismissed the risk for Disney, noting that the company hedges a portion of its fuel exposure and its fleet is more fuel-efficient and uses more alternative energy sources than peers. In other words, Ehrlich believes rising oil prices are unlikely…