Disney (DIS) - Get Report shares rose more than 14% on Friday amid a significant market rally and a positive analyst note about the entertainment giant’s prospects for its international streaming business.
Disney is set to release its new direct-to-consumer streaming service, Disney+, in Europe starting this week, and Moffett Nathanson analyst Michael Nathanson was optimistic about its international promise. The service has seen high adoption rates in the U.S., and Nathanson wrote that while incumbent Netflix (NFLX) - Get Report had to create local content for various international markets, Disney’s “known and proven” brands seem to have transcended those barriers.
The analyst reiterated his buy rating and $120 price target on the stock, which rose 14.5% to $98.21 on Tuesday. Even so, Disney shares have fallen about 26% over the past month on coronavirus-related concerns that have led to the closing of its theme parks and negatively impacted its cruise ship lines, movie ticket sales and advertising revenue.
Tuesday’s gain was Disney’s best in percentage terms since rising 16% in Oct. 2008.
Disney has said it would delay the launch of Disney+ in France from March 24 to April 7 in order to reduce internet bandwidth usage as more workers and students operate from home. It also said it would voluntarily put in measures to lower its overall network utilization by at least 25% in each of the European markets it's launching in.