Disney Gets Lift in Parks and Media With Reopenings and NBA

Credit Suisse analysts are a bit more bullish on the consumer sentiment around Disney's theme-park reopening plans for July.
Author:
Publish date:

Shares of Disney  (DIS) - Get Report were higher after Credit Suisse analysts were a bit more bullish about consumer sentiment around the company's theme-park reopening plans for July. 

The firm maintained its neutral rating and $116 price target on the company. Disney shares were at last check up 2.1% to $126.33. 

"Exiting stay-at-home has been a positive for sentiment, with news flow around parks/theaters reopening dates, sports progressing towards resuming play, and forward bookings for leisure services, cruise ships in particular, showing surprising initial pent-up demand in this prevaccine period," Credit Suisse analyst Douglas Mitchelson wrote. 

The company's Shanghai Disneyland park reopened last month. Disney World is set to open July 11, Disneyland is set to open as soon as July 15, and Disney Cruiseline resumes operations July 27. 

Hong Kong Disney and Disneyland Paris have yet to set reopen dates, but the Paris theme park won't open before Sept. 1. 

Disney should also get a boost from the National Basketball Association's plan to restart the 2019-2020 season, which paused amid the coronavirus pandemic. 

The NBA will play at ESPN's World Wide of Sports facility in Orlando, which stretches over hundreds of acres near Orlando. 

NBA players will resume their season at the complex beginning July 31. There are also discussions for Major League Soccer to play in the facility. 

Disney's theme parks and consumer business are the company's largest by revenue. 

Disney also is one of two official broadcasters through its ESPN subsidiary, and advertising for the league could produce a $1 billion advertising windfall for ESPN and TNT, according to Bloomberg estimates. 

Disney is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS? Learn more now.