Disney's Stock Surges 2% as Jefferies Upgrades to Buy

Disney's theme park and streaming services have demonstrated strong momentum, leading Jefferies to upgrade its rating to "buy." Analysts at the firm had previously expressed concerns about inflationary pressures potentially reducing tourist spending and competition from Universal Orlando's new Epic Universe theme park. However, the actual outcome has been positive, with the new park attracting more visitors to Orlando and boosting Disney's theme park business. Additionally, Disney is planning to launch two new cruise ships early next year, which is expected to further drive performance.

Jefferies emphasized Disney's continuous improvement in profit margins for its direct-to-consumer streaming services. Combined with a dense content release schedule leading up to the end of the year, these factors have led the firm to upgrade Disney's stock rating from "hold" to "buy," with the target price significantly increased from 100 dollars to 144 dollars. This news has positively impacted Disney's stock price, which rose 2% in pre-market trading, closing at 124.81 dollars.

Despite earlier concerns about inflationary pressures potentially reducing tourist spending and competition from Universal Orlando's new Epic Universe theme park, the actual outcome has been positive. The new park has attracted more visitors to Orlando, boosting Disney's theme park business. Additionally, Disney is planning to launch two new cruise ships early next year, which is expected to further drive performance. Jefferies highlighted Disney's continuous improvement in profit margins for its direct-to-consumer streaming services. Combined with a dense content release schedule leading up to the end of the year, these factors have led the firm to upgrade Disney's stock rating from "hold" to "buy," with the target price significantly increased from 100 dollars to 144 dollars. This news has positively impacted Disney's stock price, which rose 2% in pre-market trading, closing at 124.81 dollars.