Analyst Upgrades Walt Disney Company Stock Due to Streaming Success and Theme Park Performance

Following the initial drop in stock value when the Disney parks closed in 2020, the value has increased slowly throughout the year.

Disneyland Entrance

And, despite the leaner crowds that we’re seeing around Disney World this week, analysts are upgrading the stock with high hopes for the company in the coming years.

According to MSN, UBS analyst John Hodulik has upgraded the Walt Disney Co. stock, increasing the rating from “neutral” to “buy.” In valuing the stock higher, Hodulik cites Disney’s growing streaming platform, Disney+, and rising theme park attendance.

Disney Investor Day ©Disney

In the report released by Hodulik, he upped the Walt Disney Company stock price target from $155 to $200. He predicts that Disney+ will continue to grow in popularity, competing with industry leaders like Netflix who have 340 million-plus subscribers by 2024.

©Disney

The streaming service has exceeded initial expectations already, with around 87 million global subscribers following the release of Pixar’s Soul. Hodulik believes that the direct-to-consumer approach will be a success for Disney and reach a revenue of $43 billion in the fiscal year 2024.

Disney’s Hollywood Studios Crowds November 28th

In addition to predicted success with Disney+, the USB analyst argued that the theme parks will recover to their historical performance by the fiscal year 2022. In making this prediction, he cited increased attendance to the current 35% capacity at the Disney parks. He believes that as the COVID-19 vaccine becomes available, demand for leisure travel will increase, adding to the growing value of Disney stock.