A Bullish Disney Analyst On What COVID-19 Vaccines Mean For The House Of Mouse

Walt Disney Co DIS is poised to benefit from continued strong growth in direct-to-consumer streaming and a recovery in travel due to the rollout of COVID-19 vaccines, according to Tigress Financial Partners.

The Walt Disney Analyst: Ivan Feinseth reiterated a Buy rating for Walt Disney.

The Walt Disney Thesis: Disney+ reached 100 million subscribers in merely 15 months after its launch, Feinseth said in the note.

“While DTC streaming was a powerful force for DIS against the COVID-19 pandemic headwind, a vaccine-driven recovery in travel will now be a tailwind for the stock as parks begin to reopen even at initially limited capacity,” the analyst said. 

“DIS recently reported significantly better-than-expected Q1 results, and the strong momentum should continue to accelerate as we enter the spring with a recovery in travel and theme park attendance,” the analyst said. 

See Also: Disney CEO On Disneyland's April 30 Reopening: 'No Shortage Of Demand'

“While DIS has currently suspended its dividend and share repurchases to conserve liquidity during the pandemic, once business trends return to normal, DIS will continue its history of dividend increases and share repurchases,” Feinseth said. “We believe that significant upside exists from current levels and continue to recommend purchase.”

DIS Price Action: Shares of Walt Disney gained 0.51% Wednesday, closing at $195.24.