A lot of analysts have been looking at the future of Disney right now. As one of the biggest companies in the world, Disney’s outlook will have an effect on the overall market.
Recently, a Wells Fargo analyst made the statement that it could take two years for the Disney parks to return to normalcy after their closures end. Of course, this has been concerning for Disney fans everywhere. Today, however, an analyst from J.P. Morgan says otherwise: The parks could reopen by June and the company could even turn a profit.
Wall Street analyst Alexia Quadrani mentioned that her team is assuming that the domestic Disney parks will reopen on June 1st. Her reasoning is that the reopening is based on when some of the health measures will become less stringent and that June 1st is the date that Disney is currently accepting reservations.
To be fair, Disney parks have been adjusting their plans as the health situation develops. So, just because Disney is accepting reservations doesn’t mean the parks are guaranteed to reopen at that time. On the other hand, Disney Chairman Bob Iger recently commented on some of the measures they are already considering once the parks reopen, such as temperature checks at the park gates.
Now, Quadrani doesn’t believe that Disney will rocket back to normal attendance levels. She acknowledged that international guests are not going to be able to travel and many domestic guests will have financial limitations. Still, Quadrani also noted that “there’s tremendous pent-up demand.”
Finally, on whether or not Walt Disney Company will weather the crisis well, Quadrani said, “I have a huge degree of confidence in their ability to endure this crisis. This is a top-notch management team…I’m very convinced this is an outperformer in the long term. They have the best content. They have a fantastic flywheel in terms of assets.”
What do you think about the analyst’s predictions? Let us know in the comments!