Disney Stock Bounces After Earnings Call
Disney Stock Has Returned To Pre-Covid Value…
On Thursday, The Walt Disney Company turned in a much more hopeful report than had been expected.
And after a year that saw Disney stock bottom out at 79.07, Friday The Mouse bounced to a close of 138.36.
Breaking Down The Disney Stock Bounce
A number of Wall Street analysts have increased their price targets for Disney’s stock after the media giant reported better-than-expected quarterly earnings and outlined its streaming-focused future.
Shares closed Friday at $138.41, up more than 2% on twice the normal trading volume. While shares had poked above $140 on Monday and Tuesday before retreating, Friday’s trade returned shares to where they were trading in February, a remarkable comeback.
The buoyancy of the stock continues to reflect widespread optimism about Disney despite the daunting reality of COVID-19, which continues to hamper theme parks, moviegoing and live sports.
Raising The Disney Stock Target
As noted, Hayes pointed to several analysts who raised their price target for Disney stock:
- Michael Morris of Guggenheim implemented one of the biggest step-ups, lifting his 12-month price target to $165 from $140. “While we expect a multi-year negative impact from COVID-19, we believe investors will expect a recovery and as such will value shares on the company’s un-disrupted potential,” he wrote in a note to clients. Morris, who has a “buy” rating on Disney, noted that he has a multiple on the company’s SVOD services that is “consistent with our valuation approach for Netflix.”
- Tim Nollen, who rates Disney shares “outperform,” sounded more positive notes, increasing his price target from $140 to $160… December 10, when Disney plans to host a major presentation to investors, “will be an important day,” Nollen wrote in a client note. “There is a good chance Disney will announce extra near-term investment costs to build out its global DTC ambitions.”
Disney Earnings: What You Should Know
Meanwhile, Forbes’ Megan duBois expanded our thought process by posting, “Disney Earnings: From Disney+ To Busy Theme Parks, Five Things You Should Care About.”
- New Disney+ launch
- Projects are moving at the studios again
- Walt Disney World is almost out of park passes for quarter one 2021
- Disney was pleased with Mulan on Disney+ Premier Access
- Disney Cruise Line is experiencing high demand
Be sure that you check out her entire breakdown over at Forbes.