Walt Disney (DIS) PT Raised to $175 at Morgan Stanley Ahead of Analyst Day

Morgan Stanley analyst Benjamin Swinburne raised the price target on Walt Disney (NYSE: DIS) to $175.00 (from $160.00) ahead of the company's investor day event this week where management should lay out a vision for a more substantial streaming business, increasing investment spend and long-term targets. Additionally, with global vaccinations now underway a Parks recovery is coming into view.

The analyst maintained an Overweight rating, stating "DIS shares are up over 25% since November 1st, driven primarily by positive vaccine news and the implications for Parks, TV & Film production and distribution, and live sports. We now see our forecast for US Parks losses of -$2.9bn in F2021 and a return to prior peak OI in F2023 as potentially conservative. Recently disclosed reductions in headcount may further reduce losses even in the first half of fiscal 2021. The reduced risk of Parks disruption beyond expectations is helpful to shares, and helps support our $175 price target (8x our FY25 DTC revs discounted back + 16x calendar '22E core EPS)".

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