Walt Disney Co (NYSE: DIS) CEO Bob Chapek spoke Monday at an investor conference and reinforced the case for the media and entertainment giant to benefit from an economic reopening, according to BofA Securities.
The Disney Analyst: Jessica Reif Ehrlich maintains a Buy rating on Disney's stock with a $223 price target.
The Disney Thesis: The COVID-19 pandemic negatively impacted every one of Disney's business units but the company is well-positioned to take advantage of an improving health situation, Reif Ehrlich wrote in a note. Most notably, the vaccine distribution across the U.S. is accelerating while total COVID-19 cases continue to decline.
As such, Reif Ehrlich said there is a clear path ahead for Disney to open all of its theme parks and at increased capacity. The company will also face pent-up demand for experiences and travel over the next 12 to 24 months.
Chapek's presentation also focused on how Disney can improve the guest experience through personalized storytelling experiences, itinerary planning and dynamic pricing, among others.
Meanwhile, Disney is "close to the goal line" in closing a deal to retain Monday Night Football for $2 billion a year. Chapek said that any potential deal would need to be accretive to investors and include the streaming service ESPN+ as it continues to build its direct-to-consumer TV offerings.
"We reaffirm our view that Disney (DIS) is well-positioned for a reopening in the economy and the company's comments give us increased confidence in our bullish thesis," Reif Ehrlich wrote.
DIS Price Action: Shares of Disney were trading at $194.79.
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