Endgame & # 39; shows the fundamental strength of the Disney stock



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Bob Iger attends the world premiere of Walt Disney Studios Motion Pictures "Avengers: Endgame" at the Los Angeles Convention Center on April 22, 2019.

Jeff Kravitz | FilmMagic, Inc | Getty Images

The hit Disney movie "Avengers: Endgame" broke the $ 1 billion mark at the opening weekend wicket and JP Morgan believes that the strength of its main studio activity is indicative of a solid year.

The company has increased its target price on Disney to $ 150 per share, compared to $ 137 in a post titled "No end of game in sight for the success of Disney". The new target represents a 7% increase in shares since Friday's closing at Disney. The stock is already up more than 27% this year.

"The underlying business continues to perform very well with a number of notable future drivers that we believe could continue to outperform," JP Morgan analyst Alexia Quadrani said in a note to investors on Monday. . "These catalysts could include the potential of the Studio segment as well as Marvel's revelation of a longer-term schedule expected for the mid-summer, Parks attendance after the largest expansion of the year. history of the company and better revenue growth of Media Networks. "

Quadrani said J.P. Morgan also increased his estimate of Disney's third-quarter earnings to $ 1.80 per share from $ 1.73 a share, citing "better than expected performance of Avengers: Endgame".

"We continue to see stocks on the rise, even after an impressive increase of about 20% since Investor Day on April 8, due to notable upcoming catalysts," said Quadrani.

Cowen, who also has an outperformance rating on Disney shares, said in a note on Monday that the company had "a very positive content catalyst path for next year".

Disney's shares rose 2% in pre-sale trading from Friday's close at $ 139.92 per share.

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