Disney Stock Has Been Downgraded Over Predictions It Will Take Theme Parks 2 Years To Recover
In a recent piece in The Hollywood Reporter an Analyst from Wells Fargo is predicting an uphill battle for Disney theme parks due to the COVID-19 pandemic and as a result, in stocks for the Walt Disney Company Being downgraded.
Analyst Steven Cahall downgraded the stock on Tuesday amid forecasts that it may take the Walt Disney Company’s theme park division at least two years to get back to normal attendance patterns.
Unfortunately for Disney, the popularity of its new Disney+ streaming network, as well as Hulu, was not enough to stop the downgrade. As Cahill said, “We’ve thought the value creation from Disney+ (and later on Hulu) would be enough to more than offset a declining environment for media networks. We still believe in that, but we didn’t foresee this unique and severe downturn for Parks.”
“We don’t think Parks can get back to anything close to full capacity until testing and/or vaccines are far more ubiquitous,” Cahall told investors. As a response to this conclusion, Disney’s stock was downgraded from overweight to equal weight. The new price target sits at $107.00.
Disney shares closed yesterday at $101.24 which is up 2% on the day.
As we’ve previously reported here at MickeyBlog, Disney’s theme parks around the world are now closed indefinitely as a result of the global pandemic. Bob Iger went public yesterday to report that Disney is currently working on measures that can be taken to protect the safety of visitors when the parks do re-open. This could even include temperature checks for all incoming theme park guests.
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Disney Theme Parks May Be Currently Closed But Did You Know You Can Plan A Disney Getaway Through Until the End of 2020? Don’t let Coronavirus put a damper on your Disney plans.
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Source: The Hollywood Reporter