Citi Trims Disney (DIS) PT to $140 Ahead of Q1 Earnings and ESPN Update

The Walt Disney Company (NYSE:DIS) is one of the most undervalued large cap stocks to invest in now. On January 16, ahead of Disney’s FQ1 2026 earnings report, Citi lowered its price target on the shares to $140 from $145 while maintaining a Buy rating. The firm noted potential headwinds stemming from the Fubo acquisition but expects investor focus to remain on the growth trajectory of ESPN Unlimited.

On January 11, Phillip Securities initiated coverage of Disney with an Accumulate rating and a $130 price target, highlighting the company’s unrivalled IP as a key driver for strong consumer engagement across multiple platforms. The firm noted that Disney is well-positioned to monetize this IP ecosystem, which includes major franchises like Pixar, Marvel, and Star Wars, to support long-term revenue growth.

In other news, on December 11, it was reported that The Walt Disney Company (NYSE:DIS) is making a $1 billion equity investment in OpenAI as part of a landmark three-year partnership. This agreement establishes Disney as the first major content licensing partner for OpenAI’s Sora video generator, granting the platform access to over 200 characters from the Star Wars, Pixar, and Marvel franchises for user-prompted social videos starting in early 2026.

The Walt Disney Company (NYSE:DIS) operates as an entertainment company in the Americas, Europe, and the Asia Pacific. It operates in three segments: Entertainment, Sports, and Experiences.

While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.