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What This Disney, Comcast Analyst Says Coronavirus Vaccines Mean For Theme Parks

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Jayson Derrick
·2 min read
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The COVID-19 pandemic severely impacted the theme park and hotel industries, but the continued rollout of multiple vaccines against the disease represents a "shot in the arm for theme parks," according to BofA Securities.

The Disney, Comcast Analyst: Jessica Reif Ehrlich maintains a Buy rating on Walt Disney Co (NYSE: DIS) stock with an unchanged $223 price target.

See also: How to Buy Disney Stock

The analyst also maintains a Buy rating on Comcast Corporation's (NASDAQ: CMCSA) stock with a price target lifted from $62 to $68.

The Disney, Comcast Takeaways: The COVID-19 pandemic is showing signs of easing from a health perspective, as positive rates in the U.S. continue to fall from a mid-January peak, Reif Ehrlich said in a note.

More than 1 million vaccine doses are being administered on a daily basis, and a "broader relaxation" of lockdowns is imminent in the months ahead, the analyst said.

Related Link: Why 4 Analysts Think Disney Can Thrive Now And After The Pandemic

Disney and Comcast own some of the most desirable theme parks, and both companies are well-positioned to address pent-up leisure demand, she said.

As a base case scenario, parks will return to normalized levels by 2023, but the reopening process in the near-term will act as a catalyst for shares, Reif Ehrlich said.

Capacity does not have to return back to 100% pre-COVID-19 levels, as parks rarely reach full capacity on typical days, and the two companies can take advantage of significant operating leverage in the theme park businesses, the analyst said.

DIS, CMCSA Price Action: Shares of Disney gained 2.82% Tuesday, closing at $197.09. Comcast shares gained 1.6%, closing at $53.34.

(Photo via Comcast. The company's Universal Orlando Volcano Bay is scheduled to re-open Feb. 27, 2021. )

Latest Ratings for CMCSA

Feb 2021

Cowen & Co.

Upgrades

Market Perform

Outperform

Jan 2021

TD Securities

Upgrades

Hold

Buy

Dec 2020

Morgan Stanley

Maintains

Overweight

View More Analyst Ratings for CMCSA
View the Latest Analyst Ratings

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