Disney Has 'Ample Runway' To Invest, Grow Theme Parks Business, But It 'Could Take Several Quarters, If Not Years, To Materialize': Analyst
Portfolio Pulse from Chris Katje
Walt Disney Co (NYSE:DIS) plans to nearly double its investments in its theme parks, experiences and products segment over the next 10 years, totaling $60 billion. Bank of America analyst Jessica Reif Ehrlich maintains a Buy rating on Disney but lowered the price target from $135 to $110. Ehrlich believes that the recovery of Disney's theme parks post-COVID-19 has been impressive, with revenue and operating income surpassing pre-pandemic levels. However, she expects progress on Disney's four key priorities to take several quarters, if not years, to materialize.
September 20, 2023 | 6:23 pm
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Disney plans to invest $60 billion in its theme parks and experiences over the next decade. Despite the lowered price target, Bank of America analyst maintains a Buy rating on Disney.
The news of Disney's planned investment in its theme parks and experiences is directly related to the company and its future growth. This could potentially drive the company's stock price up in the long term. However, the lowered price target by the Bank of America analyst might cause some short-term uncertainty among investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100