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What Are The 5 Drivers That Could Affect Walt Disney Stock?

Benzinga2021-04-15

Walt Disney Co is poised to benefit from an uptick in amusement park attendance in the fiscal second quarter, with initial indicators suggesting robust travel to the state of Florida, according to BofA Securities.

The Walt Disney Analyst:Jessica Reif Ehrlich maintained a Buy rating for Walt Disney, with the price target unchanged at $223.

The Walt Disney Thesis:Apart from park reopening, the company plans to increase investments in direct to consumer (DTC) with the rollout of Star internationally, Reif Ehrlich said in the note.

“Content sales will likely be weak given continued delays in theatrical releases (although this will soon pick up) which has also hurt home entertainment,” she added.

“FY2Q results are unlikely to be a catalyst, however commentary on theme park reopenings, pent up consumer demand and capacity, as well as initial signs of traction on the international rollout of Star, movies, television, and advertising should be significant catalysts,” the analyst wrote.

Reif Ehrlich mentioned five key drivers of Walt Disney’s performance in the quarter:

  • 1.5% growth in affiliates.
  • 10% decline in advertising sales due to tougher comps and lower ratings.
  • Gradual increases in capacity in theme parks “with the potential of further reopenings with increased vaccination rates and relaxed regulations.”
  • Favorable DTC trends with Star’s international launch.
  • Continued softness within Studio with no major film releases in the quarter, although there are prospects of several new releases in the back half of the fiscal year.

DIS Price Action:Shares of Walt Disney had risen by 1.06% to $187.46 Wednesday.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment19

  • Gencer
    ·2021-04-22
    Tiger
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  • euniceyxy
    ·2021-04-21
    Time to buy more Disney ?
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  • WICKED_1
    ·2021-04-21
    Stonks 
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  • Jaya76
    ·2021-04-21
    Yes
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  • JFZW
    ·2021-04-21
    ??
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  • sheldonkwek
    ·2021-04-15
    Z
    Reply
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  • AnT
    ·2021-04-15
    When the amusement park resumes, profits will start to roll in. Combining their current video streaming revenues, Disney will have double revenues
    Reply
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    • Cumcumber
      Agreed
      2021-04-16
      Reply
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  • JoeK
    ·2021-04-15
    Could be another chance to buy dip
    Reply
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  • Fee92
    ·2021-04-15
    Tiger promo!
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  • kevinlaisq
    ·2021-04-15
    Please comment and like
    Reply
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  • Peiqi
    ·2021-04-15
    Plus promo from Tiger!
    Reply
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    • DingDang
      Yayee!
      2021-04-15
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  • Nicolas_Lim_
    ·2021-04-15
    nice!
    Reply
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  • keew
    ·2021-04-15
    Good one
    Reply
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  • NCM
    ·2021-04-15
    Ok
    Reply
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  • ICEY12
    ·2021-04-15
    Good News ?
    Reply
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    • Kennyoscar
      Ok
      2021-04-15
      Reply
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    • NCM
      Ok
      2021-04-15
      Reply
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  • Loolala
    ·2021-04-15
    Open the theme parks!
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  • szueyann
    ·2021-04-15
    Pls like and comment. Thank you. 
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    • szueyann
      thanks
      2021-04-16
      Reply
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    • XNOP593
      Response to my comment too
      2021-04-15
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  • KinKat
    ·2021-04-15
    No mention of their $1 price hike for Disney+ which'll bring in xtra $100m/mth, based on 100m subscribers
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    • KinKat
      Thx!
      2021-04-15
      Reply
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    • Runningdown
      Here’s a comment in case u need one
      2021-04-15
      Reply
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  • ApacheFire
    ·2021-04-15
    Have been eyeing Disney for a while, still waiting for an opportunity to buy!
    Reply
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