Jim Cramer: Disney Will Figure Out How to Reopen Parks
What would it take for you to go back to a Disney theme park?
An analyst at Citi lowered his price target for Disney on Tuesday to $135 from $161 and cut his earnings estimates to reflect the impact of the coronavirus pandemic on the entertainment giant.
Jason Bazinet said Disney "will see material headwinds at the parks segment."
"And, ad exposure and diminished theatrical revenues will also pose incremental financial pressures," he said.
"On the other hand, the direct-to-consumer apps will likely see a tailwind from COVID-19. So, on the COVID-19 Impact dimension ... Disney is a mixed bag. But, it tilts to the downside."
And this followed yesterday's downgrades of Disney.
"Yeah, I mean, I totally get that. Every single part of their businesses is injured, but they have an iconic brand, and the iconic brand is going to be in business. People going to give them money," said Jim Cramer in his exclusive Action Alerts PLUS show on ActionAlertsPLUS.com when asked for his thoughts. "They know they're going to pay it back. I think that Disney is a strong franchise, even though the numbers are bad. And I thought that those two guys who downgraded it... What they're doing, I think, is they're saying, "Okay, well, look. The stock was in the high $80s. It went to the mid-100s. All right?" I mean, this is another one of those stocks that just got completely oversold in the month of March. So it got down to $87, and then it got back to $106."
So, what would it take to get people back to the parks?
Watch the full video above for Cramer's full take.
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