Walt Disney Co (DIS)

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Disney Stock Eyes Rebound After Credit Suisse Comments
By: Schaeffer's Investment Research | September 22, 2021

• On Tuesday, CEO Bob Chapek warned the delta variant is leading to production delays

• Year-over-year, DIS remains up over 36%

Media and entertainment name Walt Disney Co (NYSE:DIS) is making headlines again this week, after Credit Suisse said yesterday's selloff was an overreaction, and noted the stock could soon bounce over 27%. On Tuesday, CEO Bob Chapek warned the spread of the Covid-19 delta variant is delaying production of titles slated for release in the fourth quarter, leading to a lower-than-expected subscriber growth forecast. Still, Chapek said the company remains "very bullish and confident" in long-term subscription growth for streaming service Disney+. At last check, shares were up 1.5% to trade at $173.70.

The security has been trading mostly sideways since cooling from a March 8, all-time high of $203.02. A familiar floor at the $168 level contained yesterday's pullback. And while pressure at the $188 area has kept a tight lid on the shares since April, DIS sports a 36.2% year-over-year lead.

The brokerage bunch is overwhelmingly bullish on Disney stock. Of the 17 analysts in coverage, 14 carry a "buy" or better rating, while three say "hold." Plus, the 12-month consensus target price of $210.77 is an impressive 21.7% premium to current levels.

The options pits are brimming with activity today. So far, 55,000 calls and 22,000 puts have crossed the tape, which is double the intraday average. Most popular is the 9/24 175-strike call, followed by the 170-strike put in the same series, with positions being opened at the former.

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