This post was originally published on this site
A KeyBanc Capital Markets analyst lowered the firm’s price target on Walt Disney (NYSE:DIS) to $131 from $151 on Wednesday, maintaining an Overweight rating.
The analyst explained that Keybanc’s domestic geolocation data tracking of Disney and Universal theme park attendance shows mixed results.
“Overall Disney attendance rebounded in June while overall Universal Studios’ attendance was weaker. With our data not jumping off the page, in certain cases already showing rapid deceleration y/y, and the macro environment deteriorating, we find it prudent to lower our Theme Parks estimates for both Disney and Universal in 2Q and the remainder of 2022, which brings our 2023 assumptions lower as well and below consensus,” said the analyst.
However, the firm believes expectations likely have moved lower, and theme parks “remain a key differentiator between DIS and CMCSA relative to Media peers, with DIS our preferred way to invest in Media.”
“Disney – Total DIS Theme Park attendance for June was 85% of 2019 levels (+13% y/y and +16% m/m), resulting in C2Q attendance of 85% of 2019 levels (+24% y/y, +10% q/q). Importantly, total DIS improved sequentially in June after a weaker than anticipated May as a result of Walt Disney World (WDW) rebounding with attendance at 83% of 2019 levels (+4% y/y, +20% m/m), which finished the quarter at 84% of 2019 levels (+9% y/y, +8% q/q),” added the analyst. “Disneyland (DL) held relatively steady in June with attendance at 96% of 2019 levels (+95% y/y, -1% m/m). This brought DL 2Q attendance to 94% of 2019 levels (+226% y/y, 17% q/q).”
