The Walt Disney Company (NYSE:DIS) is considered one of the most undervalued large cap stocks to invest in now. Citi lowered its price target on the shares to $140 from $145 ahead of Disney’s FQ1 2026 earnings report. Phillip Securities initiated coverage with an Accumulate rating and a $130 price target, highlighting Disney’s strong consumer engagement and IP ecosystem.

On December 11, Disney made a $1 billion equity investment in OpenAI as part of a three-year partnership. Disney will be the first major content licensing partner for OpenAI’s Sora video generator, allowing access to over 200 characters from franchises like Star Wars, Pixar, and Marvel for user-prompted social videos starting in early 2026.

Disney operates as an entertainment company in the Americas, Europe, and the Asia Pacific, with segments in Entertainment, Sports, and Experiences. While DIS is seen as a good investment, some AI stocks may offer greater upside potential and less downside risk. For an undervalued AI stock benefiting from Trump-era tariffs, consider the best short-term AI stock.

For more stock insights, check out “30 Stocks That Should Double in 3 Years” and “11 Hidden AI Stocks to Buy Right Now” on Insider Monkey. Note: No disclosures in this article. Original source: Insider Monkey.

Read more at Yahoo Finance: Citi Trims Disney (DIS) PT to $140 Ahead of Q1 Earnings and ESPN Update