After a 60% plunge, JPMorgan: Disney will rise by 50%!
Disney has fallen more than 6% this year, with a decline of 60% from its all-time high! Morgan Stanley's target price for Disney is $125, but it may take several quarters to determine its development direction.
Despite the bull market in tech stocks this year, it has been a tough year for Disney, with a cumulative decline of over 6% and a drop of 60% from its all-time high!
However, JPMorgan believes that Disney's stock price could rise by 50%.
Why bullish on Disney?
Walt Disney held an analyst meeting with a focus on its parks, featuring CEO Bob Iger, Disney Parks, Experiences, and Products Chairman Josh D'Amaro, ESPN Chairman Jimmy Pitaro, and other executives.
In terms of stocks, we have found that investors have mostly adopted a wait-and-see attitude towards Disney this year, as the company is working to determine its strategic future but likes the current stock price level.
It is expected that in the next 6 to 12 months, major issues such as Hulu and ESPN investments will be resolved, which should give investors more confidence in Disney's long-term value creation.
Although Iger did not directly mention the resumption of dividends, his closing remarks seemed to imply that there is still room for shareholder returns even at a higher level of capital expenditure investment.
We still recommend buying the stock with a target price of $125, but we recognize that it may take several quarters for us to have a clearer understanding of the company's direction and for its stock price to start rising.
