NEW YORK (TheStreet) --Shares of Walt Disney (DIS) were climbing in early afternoon trading on Wednesday, after an upgrade to "buy" from "hold" with a $112 price target at Deutsche Bank today. The bank has confidence that double-digit earnings growth will occur in 2018.
Shark Tank investor and O'Shares Investment chairman Kevin O'Leary explained why he's feeling bullish on Disney during CNBC's "Halftime Report" today.
"The investment thesis here is: where can I hide out in content, where everybody hates the name, and that people haven't looked at the diversification of revenue enough," O'Leary explained.
The company's issues stemming from ESPN have overshadowed its other successful business units, notably its theme park in Shanghai and its box office.
"My guys over [in Shanghai] tell me the place is swamped, they're going to beat their numbers. That's my own assessment in that area," O'Leary contended.
Moreover, "the box office has been great in 2016 and looks just as good in 2017," he added.
O'Leary hypothesized that Disney could translate into a "7% home run" for investors should they hold onto the stock.
"Where can I get a dividend, where can I make 7% in 2017? I think this name, which I gave a full weighting (5% position) to in my portfolio, is doing exactly what I hoped it [would]," O'Leary said.
All that being said, one bit of advice O'Leary had for Disney CEO Bob Iger, do not buy Netflix (NFLX).
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Disney as a Buy with a ratings score of B. This is driven by a number of strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: DIS