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Disney's Parks Seeing Steeper Recovery: Guggenheim

·1 min read

By Christiana Sciaudone

Investing.com -- Walt Disney Company (NYSE:DIS) got a price target boost from Guggenheim on trends that point to better recovery and higher spending at parks.

Analyst Michael Morris raised the price target to $215 from $210 with consumer trends pointing to a steeper parks recovery trajectory, StreetInsider reported.

Shares were little changed.

The analyst reiterated a buy rating on the stock, which has 18 such ratings, three holds and nary a sell, according to data compiled by Investing.com.

"The state of California has allowed Disneyland to return to full capacity as of 6/15 and Disneyland Paris is scheduled to re-open on 6/17," Morris wrote in a note. "While management has guided to low double-digit attendance growth over the next several months, we anticipate that strong demand and a high level of execution (‘great majority of cast members ready and able to return’) will support a steep recovery rate, with fiscal 2022 revenue matching 2019 levels."

Disney shuttered its parks during the pandemic, with California parks reopening in April, and Florida earlier. For the fiscal second quarter, ended April 3, Disney reported parks revenue down 44% from a year earlier. A bounce is expected not only with the fully reopening of parks, but also with pent up demand for experiences outside the home as vaccinations do their job.

"Our updated analysis draws from the healthy return of broader domestic restaurant demand, tempered by the longer expected booking lead time for vacation windows, particularly at Walt Disney World," the analyst said.

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