Walt Disney Co (NYSE:DIS) was featured as the call of the day Friday on CNBC's "Fast Money Halftime Report."
What Happened: Wells Fargo reiterated Disney with an Overweight rating and a $196 price target. The firm highlighted the 10% to 11% upside it sees in domestic parks heading into 2023.
Wells Fargo believes such could translate to roughly a 5% increase in company earnings per share.
Sethi's Take: Douglas C. Lane & Associates' Sarat Sethi backed up the call from Wells Fargo.
"This is a complete play on the revenge economy," he said. "People want to come out. They are traveling to Disney and the average price per ticket is 40% higher today than it was two years ago."
Sethi is also bullish on what the company is doing with its Disney+ streaming platform, which others have criticized because of the amount of spending required to take market share.
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"I love companies that spend money for the future. I think that's the way you want to go and in entertainment and services this is the company that I want to hold for three to five years," Sethi said.
The parks business combined with the streaming business creates a flywheel effect. As international travel recovers throughout the year, Disney stands to benefit, he said.
"You're buying a company that has tailwinds to its earnings growth ... so I like it," Sethi said of the analyst call.
DIS Price Action: Disney has traded between $128.38 and $191.61 over a 52-week period.
The stock was up 0.21% at $139.25 at time of publication.
