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Disney Jumps as Theme Parks Draw Crowds Back

Published 04/14/2021, 10:28 PM
Updated 04/14/2021, 10:30 PM
© Reuters.
DIS
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By Christiana Sciaudone

Investing.com -- Walt Disney Company (NYSE:DIS) popped 2.6% because we really, really need a happy ending.

BofA Securities reiterated a buy rating and $223 price target on the stock as theme park attendance seems to be improving, StreetInsider reported. 

While second quarter results are unlikely to be a catalyst, "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," analyst Jessica Ehrlich wrote in a note.

Disney's parks were closed for months -- those in California are reopening at the end of this month -- leading to a 53% year-over-year drop in revenue for the segment in the quarter ended Jan. 2. Overall sales for the quarter fell 22%. Shares hit an all-time high earlier this year as vaccines rolled out and people scratched the travel itch.

Initial indicators suggest travel from outside the state is robust, Ehrlich said.  

 

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