Maybe a bit of good news? According to MarketWatch, broker UBS is upgrading this stance from “neutral” to “buy” on Disney stock.

They also raised their price target from $155 to $200 because they think it will “….achieve scale similar to industry leader Netflix with 340 million+ global subscribers by 2024, while its premium IP creates pricing power and enables the company to spend less per sub on content, driving better economics over time”

They also believe that the vaccine availability and “pent up demand” for vacations will raise interest in the parks during the second half of 2021.

My personal take

While I agree that $200 is reasonable, considering it closed at $172.28 on Thursday, I do think that there are other factors to consider, like the possibility of more shut-downs, people not having the resources to travel far away and to expensive locations like Disney parks.

Yes, Disney owns several important IPs, however Disney has made many missteps with an IP like ‘Star Wars’ as evidenced by the sequel trilogy. We may see a loss on Phase 4 of the MCU with some fans feeling that Endgame was the logical conclusion for them.

Not that long ago Bob Iger was talking over saturation and brand fatigue. Bringing in Jon Favreau and Dave Filoni with ‘The Mandalorian’ was a great move and gives us hope for the future. However during a recent investor call Bob Chapek was asked if Disney+ was going to focus on and quantity over quality when it comes to Disney+ and he basically said yes.

They aren’t out of the woods yet at the Walt Disney Company and it will likely be a couple of years until they are. Almost all the theme parks are shut down and they are banking on streaming services, Walt Disney World and merchandise sales.

Many are also speculating their stocks are somehow inflated.

That being said. I personally would buy them because I’m a Disney fan and an optimist that hopes that hard lessons will lead to better decisions. I can see it going to $200. I just am more cautious than the analysts because, as a fan, and someone that covers the company extensively, I don’t necessarily think it’s going to fully go the way they hope.

But at the end of they day the analysts say that you should buy, so if you want to buy go for it! Many Disney fans will anyways, just because they want to own a piece of that company.

What do you think? Comment and let us know!

Source: MarketWatch