This Upcoming Catalyst Could Send Disney Shares 'Off To The Races'

The Walt Disney Co DIS was featured as the call of Monday on CNBC's "Fast Money Halftime Report."

What Happened: BofA Securities reiterated Disney with a Buy rating and a $191 price target after the analyst firm revised its earnings per share estimates higher for the first quarter. 

Related Link: How Amazon, Disney And Others Are Beating Netflix At Its Own Game: Analyst

Lebenthal's Take: Cerity Partners' Jim Lebenthal agrees that Disney will likely report better-than-expected earnings results on the back of a strong recovery at the parks and consistent streaming numbers. 

He told CNBC that the company's third-quarter results have been an overhang on the stock, but following a strong fourth-quarter report, Disney shares are likely to pick up some momentum if the upcoming report is strong. 

"If you get another good first-quarter report here, I think it's off to the races and I think you will have that because we know that theme parks were doing really well," Lebenthal said. "And the streaming business, you know, nobody is really talking about, but it's just chugging along."

Disney has been able to pass along inflation costs (and then some) to consumers as demand for parks remains incredibly strong, he noted. The company "blew the numbers out of the water" in terms of streaming subscriber growth last quarter, he added. 

"I do think you will get a good first-quarter report here and that will take it out of the penalty box," Lebenthal emphasized.

See Also: Disney Heir Comes Out As Transgender, Faults Legislation Aimed At Trans Youth

DIS Price Action: Disney has traded between $128.38 and $190.40 over a 52-week period.

According to Benzinga Pro data, the stock was down 0.42% at $131.21 at press time.

Photo: StockSnap from Pixabay.