The success of Disney’s (DIS) “Avengers: Endgame" has analysts expecting a much larger contribution by its studio division to its bottom line.
“Endgame” smashed records with its weekend debut. The film reeled in an estimated $1.2 billion worldwide, making it the biggest opening weekend on record. Domestically it brought in a record $350 million in sales.
JPMorgan increased its price target on shares of The Walt Disney Company to $150 from $137, and maintained its overweight rating.
“While Disney’s core business has been largely overshadowed by the reveal of Disney+, the underlying business continues to perform very well,” said JP Morgan analyst Alexia Quadrani in a note.
Quadrani said Disney could see boosts from its studio segment, particularly from a reveal of coming Marvel movies, greater park attendance, and higher revenue from its media networks.
The firm also commented on Disney’s upcoming streaming service Disney+. Quadrani wrote that the company will be opening signups in advance of its November 12th start date which which could fuel news coverage and tracking of signup numbers prior to launch.
JP Morgan also raised its estimates for Disney’s third-quarter earnings to $1.80 a share from $1.73.
Shares of Disney touched a record high, hitting $147.30 before paring gains and closing at $139.30. Other stocks that saw an ‘Avengers boost’ include AMC Entertainment and IMAX.
Bridgette Webb is a producer at Yahoo Finance. Follow her on Twitter: @bridgetteAwebb.
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