Disney Stock Price Hits High Just Before Investor Day
What a crazy year for the Walt Disney Company (and, well, everyone else in the world). But to be specific, after a year that saw Disney stock go sub $80, last night it closed at $157.45 – an all-time high.
A well-timed data point for Disney’s “Investor Day 2020,” set to commence today at 4:30 PM ET
Of course, a lots of people have noticed, not the least of which are the Hollywood trades like Deadline.
Hollywood Is Watching
With Covid-19 decimating theme parks, sports, production and other pillars of its business, the Walt Disney Co. should be limping toward the end of 2020.
Photo: Jeff Gritchen, Orange County Register/SCNG
Instead, investors have bought into the media giant’s resilience in a big way, sending the company’s stock up more than 25% in the past month. Shares finished today at $154.40, their highest closing price ever, after peaking at $157.45 earlier in the day.
The balance sheet may be in tatters (with two straight quarters of losses and the first fiscal year of red ink in 40 years) but the stock is keeping the dream alive for a return to glory. To quote the 1964 theme song reprised in the latest DisneyWorld TV ads, “There’s a great big beautiful tomorrow.”
So Is Wall Street
Meanwhile, The Motley Fool was watching Disney Stock; what with firms like Wells Fargo and Morgan Stanley raising their expectations prior to Investors Day.
Analysts at Wells Fargo upgraded Disney stock to overweight, based on the company’s progress transforming into a streaming-focused company. Wells Fargo pointed to the strength of Disney’s streaming brands, which include Disney+, Hulu, and ESPN+, and it sees the company further leveraging its existing content library and assets in the coming years.
KeyBanc’s analysts are also optimistic on Disney’s streaming strategy, starting coverage of the stock at “overweight” with a $177 price target. KeyBanc admits that the core media networks are under pressure but expects continued heavy investments in streaming to drive growth.
Morgan Stanley also weighed in, maintaining its overweight rating and raising its price target from $150 to $175. In addition, Loop Capital lifted its price target from $150 to $175 while boosting its earnings per share (EPS) estimates for 2022. Loop Capital believes that Disney might announce a new tier for Disney+ that could increase the average revenue per user.
What Will We Learn, Today?
But whether you agree or disagree, you better believe that more than just fans will be watching for news out of today’s big event for The Walt Disney Company.
MickeyBlog.com plans extensive coverage of today’s Disney “Investor Day 2020.” So, keep it here for all the news and analysis.
