Full disclosure, I have one share of Disney stock. I am officially a shill. Da. Dah. Duuuuum.
And, as a “stockholder” I am excited to listen in to meetings, read reports, and, more generally, understand what the heck I am writing about every day. That said, as I use “Stash” to learn about trading and different financial processes – try it, on tme, I love the app.
So, these days, I hit some of the financial stories about “The Walt Disney Company” with renewed vigor and personal interest.
Thus far, on my lonely stock, I have made $2.56.
And heck, how cool would it be to up that $3.15?
That’s exactly what Morgan Stanley bank analysts are predicting for “The Mouse” this year.
- Morgan Stanley sees “a big year ahead” for Disney, reiterating its overweight rating for the media company.
- “2019 is likely a transformational year for Disney,” the bank’s analyst Benjamin Swinburne says. “Stepping back from the complexity, it will exit the year in a different place than it begins.”
- The bank’s 12-month price target of $135 would translate into a 23 percent gain.
With the new theme park Star Wars Land opening this year and the Fox acquisition nearing the finishing line, Disney is setting itself up for a transformation, according to Morgan Stanley.
The bank sees “a big year ahead” for Disney, reiterating its overweight rating for the media company in a note on Thursday. Its 12-month price target of $135 would translate into a 23 percent gain based on Disney’s Thursday trading level.
“2019 is likely a transformational year for Disney,” the bank’s analyst Benjamin Swinburne said. “Stepping back from the complexity, it will exit the year in a different place than it begins. Significant investments in content, theme parks, and M&A weigh on near-term earnings, but should set up the business for long-term growth.”
I may be boring the heck out of some of you, but — to me — it’s interesting to watch the ups-and-downs of the market through the lens of a very small portfolio of enjoyed things (I also “own” partial shares of Apple and Starbucks).
Yesterday was a good day, with a .46% upward change for Disney, part of a 1.92% change over the year. But investors could expect much more.
It has not been easy for Disney trying to compete with streaming giants like Netflix … But the tides are starting to turn as Disney is poised to benefit from its acquisition of Fox, which Morgan Stanley predicts will lead to share repurchases of $5 billion in 2020. And its own streaming service Disney+, which is slated to debut this year, will drive subscription for ESPN and other cable nets, the bank said.
“We believe Disney can continue to deliver solid margin expansion at Parks and healthy growth in Studio OI, particularly with a strong content slate and continued ability to monetize on successful franchises,” Swinburne said.
Now, I don’t (yet) know what all of that means, but it sounds pretty good.
But what do you think? Are you an investor? Do you own Disney stock? What do you think about The Walt Disney Company’s prospects this year?
Advise me -er, um – tell me in the comments below!