Walt Disney Co (NYSE: DIS) has recovered nearly 15% in the stock market over the past couple of weeks, but the founder of Mark Asset Management says it is still a fairly cheap stock to own.
Highlights from Mark’s interview with CNBC’s ‘TechCheck’
Morris Mark expects Disney to greatly benefit as the global economy continues to pull out of the COVID-19 pandemic, but has several other reasons for being bullish on the stock as well. On CNBC’s “TechCheck”, he said:
We think Disney is a cheap stock, when you look at the assets, the real estate and the library that give it a tremendous base in anything like a normal economy recurring income, and the fact that we appear to be moving into a normal economy, domestically first, eventually worldwide.
JPMorgan’ Alexia Quadrani has Disney as a top pick for 2022. Her “overweight” rating on the stock comes with a price target of $220 a share that represents a more than 45% upside from here. DIS had hit an ATH of $202 in March 2021.
Mark is pleased with Disney’s focus on streaming
Last week, Disney reported market-beating results for its fiscal first quarter. The American multinational had 129.8 million Disney+ subscribers at the end of Q1 versus 125.75 million expected. Mark added:
Disney is a company with great franchises. It continues to invest in the thing that sets it apart, which is high-quality entertainment. Its decision to emphasize streaming in the context of offering a wide range of entertainment products is right on. So, we like it, and we were impressed with the quarter.
In January, Disney charged executive Rebecca Campbell with new responsibilities related to international content creation aimed at expanding the global subscriber base at its streaming services.
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Source: https://invezz.com/news/2022/02/14/veteran-investor-morris-mark-disney-is-a-cheap-stock/