- Analysts continue to express their admiration for The Walt Disney Co (NYSE:DIS).
- Rosenblatt analyst Barton Crockett initiated coverage on Disney with a Buy rating and a $177 price target (38.5% upside).
- Crockett saw Disney's and its peers' theme parks as the most stimulating demand environment ever, judging by record pricing leverage and big crowds.
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- Consumers swarmed back to Disney parks in more significant numbers than anticipated and spent substantially more per person, reflecting pent-up demand.
- He saw more catalysts upon resuming international travel resumes and Disney's cruise ships.
- Crockett saw Disney as relatively well-positioned as an early mover with scaled leadership, a global footprint, and a distinct brand in DTC streaming.
- Disney had three big Marvel titles slated for theaters this fiscal (sequels to Doctor Strange, Thor, and Black Panther.)
- Crockett saw the Panther sequel reach pre-pandemic performance levels in November, with $1.2 billion at the global box office. Avatar 2 is due in December.
- JPMorgan analyst Philip Cusick lowered the price target on Disney to $175 from $200 (36.9% upside) and kept an Overweight rating.
- Cusick saw Disney's Parks business as a stand-alone company with the intellectual property that would trade well ahead of Parks peers' 9-10 times EBITDA.
- Disney's streaming businesses have the scale and management conviction to, over time, be a "massive global streamer, thanks to the larger scale of a worldwide audience.
- Price Action: DIS shares closed higher by 3.24% at $131.91 on Tuesday.
- Photo by Wikimedia Commons
