Shares of Walt Disney (DIS) - Get Report posted gains in early trading on Tuesday after an analyst at Cowen upgraded the company's shares to outperform from market perform and raised his 12-month price target to $131 from $102.
In a research note to clients, Cowen analyst Doug Creutz noted that he expects the company's investor day on Thursday to be "a deck-clearing event for sentiment."
"Disney has a very powerful pipeline of product that will play out over the balance of the year," said Creutz, noting upcoming releases of "Frozen 2" and "Star Wars Episode IX", among others, "could drive a $3 billion calendar year studio operating profit" and also kick off "a re-acceleration in consumer products performance in 2020."
"We believe the launch of 'Star Wars: Galaxy's Edge' at both domestic parks this summer should catalyze continued strong growth in 2H:F19 and FY20," he added.
Disney will host an investor day on Thursday when it is expected to provide details on its new streaming service, Disney+, as well as context on its plans following its $71 billion acquisition of Fox's entertainment assets, which closed at the end of March.
Shares of Disney were up around 1% at $115.82 in early trading on Tuesday.