The Disney shares rose on Tuesday following a Wall Street upgrade ahead of the company's investor day later this week.
"We see Disy's catalyst path for the next year as very attractive, and believe Thursday's investor day is likely to be a tire -clearing event for sentiment," wrote Cowens Doug Creutz.
Cowen upgraded Disney to exit from the market performance and increased his 12-month price target to $ 131 from $ 102. Disney stocks add about 1 percent to premarket trading on Tuesday after the call.
"Disney has a very powerful pipeline of product that will play out over this year's balance," Creutz wrote. "On the film side, we believe that Disney's slate can run a $ 3B calendar year of Studio operating profit. We also believe slate, mainly fourth quarter: C1[ads1]9 releases Frozen 2 and Star Wars Episode IX, should set the stage for an acceleration in consumer product performance by 2020." 19659005] "We believe that the launch of Star Wars: Galaxy's Edge in both house parks this summer should catalyze continued strong growth in 2H: F19 and FY20," added the analyst.
Disney will host an investor day on Thursday where it is expected to provide details about its new streaming service disney +. Investors are also expecting details on the road ahead, having offered $ 71 billion deal for Fox's entertainment stocks, which closed in late March.
"We believe that the Disney + DTC service (direct to consumer) is well positioned to have an extremely strong launch that exceeds consensus subscriber expectations," Cowen said. "With the upcoming analyst day likely to provide a necessary number recovery (for near-term fees for dilution and DTC costs), the investor's focus can shift to this positive catalyst path, and dream of Netflix-like valuations for the DTC business for many years to come. "
Disney shares are up about 5 percent this year, under S & P 500's 15 percent return.