Breakout Alert: Disney Stock Hits Multi-Year High

Key Points

• Shares just hit their highest level since August 2022, confirming a major breakout could be on the cards.
• A fresh upgrade from Jefferies sees another 15% upside at least in the weeks ahead. 
• The technical setup also points to this rally having legs.

On a day when the S&P 500 hit a fresh record high, Disney Inc. NYSE: DIS gave its investors something to cheer about by hitting a multi-year high of its own. Monday’s session saw the stock print its highest level since August 2022, as it looked finally ready to break out of the multi-year range it’s been trapped in.

It’s only been a few weeks since it was testing the lower end of that range back in April, but after rallying more than 50% since then, Disney is shaping up as one of the summer’s most exciting comeback plays.

Much of this upside has been fueled by May’s strong earnings report and a general resurgence in risk appetite across equities, and investors would be forgiven for thinking the stock wanted to take a breather. However, analysts' fresh commentary this week suggests plenty more gains to come. 

Massive Upside From Cruises for Disney 

The team over at Jefferies upgraded Disney to Buy on Monday, lifting their price target to $144 and joining the growing chorus of bulls that includes Guggenheim and Rosenblatt, both of whom raised their targets to $140 in June. Jefferies had previously flagged macroeconomic concerns, a slowdown in consumer spending, and increasing competition as reasons to be cautious on Disney, but those fears have since eased.

They cited positive commentary around Disney World bookings while pointing to two new cruise ships due in 2026, which are expected to generate as much as $1.5 billion in fresh revenue.

It’s a strong vote of confidence in Disney’s ability to drive top-line growth from multiple levers, and it also highlights how the company is being viewed through various lenses. This optimism around its diversification efforts is a powerful tailwind for the stock, particularly as it breaks out from technical resistance.

The Technical Setup Is Pointing Higher

For the better part of the past two years, Disney has failed to break through resistance around the $125 level. Each time shares have been tested since August 2022, they have been turned around and invariably sent back to test the lows below $90.

This pattern looks like it could soon be over, though, based on the stock’s price action of the past week, it just set a new high for 2025, surpassed the highs from 2024 and 2023 and closed on June 30 less than 2% away from the peak in August 2022.

If it can hold onto this momentum in the coming sessions, the door should be open for a move to, and through, $130 in the short term. From there, the path to Jefferies’ $144 target looks relatively straightforward, especially with strong market momentum behind it.

A Word of Caution

That said, the RSI is starting to look extended, closing on Monday just under 78, which puts it in extremely overbought territory. While that suggests a near-term cooldown could be on the table, it’s also a classic hallmark of a stock in a strong trend and could easily go higher if the breakout is confirmed and the algorithms start picking it up.

Disney’s bulls will want to see this kind of technical strength, and the ongoing bullish MACD crossover only reinforces that this is a rally with some room to run yet.

The only other near-term risk worth flagging is the upcoming earnings report in the first week of August. Expectations will be high, with the stock up more than 50% since April, and RSI will get a little frothy. Any stumble could derail momentum, even if only temporarily. Still, analyst support is overwhelmingly bullish, and the breakout is all but confirmed.

If Disney can build on this week’s gains and stay above $125, a run toward new multi-year highs is far more likely.