Disney stock price gained some momentum in the past couple of months but the shares of the entertainment company are still well below from an all-time high of $153. Disney stock price had hit $70 level in April as the coronavirus pandemic has forced the company to close its parks, resorts, and hotels.
After several months of closure, the company has started reopening its theme parks, resorts, and hotels. CFO Christine McCarthy said more than 50% of its resorts and hotels will be opened by the end of this year. The company has already announced to reopen the majority of theme parks during the third quarter.
Deutsche Bank has raised the Disney stock price target to $163 from the previous target of $128, with a Buy rating. The firm shows confidence in Disney’s streaming business, which is growing at a faster pace than expectations.
“Disney is “succeeding in the land grab phase” of direct-to-consumer, combining impressive subscriber results so far with the large scale that drive significant opportunities to monetize,” the firm said.
“The weekend’s premium release of Mulan direct-to-consumer should offer an early proof point on premium VOD,” the firm added. Mulan is a high-stake theatrical release debut on Disney Plus for premier subscribers.
The Walt Disney stock price is currently trading around $133, down almost 8% year to date. Morgan Stanley has provided a $135 price target, with an outperform ratings.
Disney’s fourth-quarter revenue is also likely to grow sharply from the previous quarter. Its third-quarter revenue of $11.78 billion plunged more than 41% from the past year period. Parks were among the hardest hit segment due to the pandemic. Its Parks, Experiences, and Products revenue plunged 85% to $983 million.
However, Disney plus subscriber’s growth was the bright spot as subscribers jumped to 57.5 million in the third quarter. This is up from last quarter’s 33.5 million subscribers.