Disney Stocks Are Still A Buy According to Traders
According to a recent piece on CNBC, despite recent skepticism surrounding Disney’s decision to reopen Walt Disney World theme park, its still an okay time to invest in Disney stock according to some analysts. The piece highlights that Disney shares climbed on Friday as the company was getting ready to reopen parts of Disney World. even though coronavirus cases in the state are continuing to rise.
Though criticism has been mounting regarding Disney’s reopening plan, the company is admittedly in a bit of a bind as the theme parks are the biggest profit makers for the company. After four months in shutdown, revenues have been put at continued risk as the Walt Disney World continues its phased reopening.
In terms of stocks, they climbed nearly 2% on Friday in the lead-in to Magic Kingdom and Disney’s Animal Kingdom opening on Saturday. And according to Mark Newton, president and founder of Newton Advisors, there is still room to run. He said, “Momentum right now is still pretty positive off those lows, and really, the stock is not all that overbought.” Newton added, “A lot of how the stock is going to trade largely, I think, rests with vaccine hopes and/or hospitalization rates, and it’s really going to be, to some extent, dependent.”
The discuss continued with analysts calling Disney stock “somethng to own.” and saying that the stock is a good to have going into Fall and maybe even into the year’s end. ”
Disney shares were trading just short of $119 on Friday. Newton said he has a technical targe of $128 for the stocks ( a 7.5% increase) but they could move above $128 into the 140-150 range marking a 17%+ increase.
However, the stock could always dip under 107 if profits aren’t as expected. However, at the moment the stock looks good in the week ahead. Another analyst Chad Morganlander with Washington Crossing Advisors backed this up saying, “We would be invested in Disney. In fact, we own this in our all-cap value portfolio.” He added, “We believe that due in part to the coronavirus, we’re path-dependent on a therapeutic as well as other medical treatments.”
Morganlander added that the long term prospects for Disney are good and that he was expecting the theme parks to improve over the next couple of years. This combined with Disney’s digital ventures are both positives. He continued, “As an investor, we’d look two to three years out for this story,” he said. “We think that this could do very well in this type of environment as we start to improve.”
This is a story we’ll continue to follow closely here at MickeyBlog. Readers are encouraged to keep checking in with us for further news and updates.
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