The status of Disney gets a downgrade from stock analysts considering Covid 19’s current and coming wave. Risk and uncertainty puts the company in “neutral”.
Walt Disney Co grade gets dropped from “buy” to “neutral” the day before the company’s stock were scheduled to issue it’s next earnings report. Michael Nathanson, one of the top Senior Research Analyst at MoffettNathanson, covers the updates regarding the Media industry and the leading Digital Advertising companies. His reports says the changes Disney is facing is “an admission that we believe the economic impact on the company will be longer than most anticipate.”
This says that stocks may not see such a rise so soon, especially considering the second wave of the corona virus that may hit this year due the country reopening, relaxing precautionary practices, susceptibility rate rising etc.
Disney Parks which is a consumer favorite, bucket list attraction also gets a cut for the coming term via analytics. From $26.2 billion, the current fiscal year is forecasting about $17.7 billions in earnings- a 33% drop. Looking at the years to come 2021-2022, when parks can reopen, there’s an expected 1% drop before revenue rises back up to $21.3 billion by 2022. When it comes to the film aspect of the company, Nathanson forecast a 3% loss of revenue in 2020, lowering earnings 4% to $7.8 billion. And in the film division, Nathanson forecast a 23% loss in revenue in 2020, lowering earnings 20% to $2.7 billion.
But Nathanson does see Disney potential to adjust to the new way of life that calls for accessing our entrainment in different ways than what we were used to. Nathanson wrote that Disney “has the advantaged assets to win this new world.” Praising the team that works behind the magic of Disney he says “the company’s leadership, strategic positioning, asset mix and brand equity have consistently delivered for their investors.”