Latest news with #EpicUniverse
Business Insider
2 days ago
- Business
- Business Insider
‘It's Time to Pull the Trigger,' Says Jefferies About Disney Stock
Since 2016, Walt Disney (NYSE:DIS) has faced various challenges that have constrained operating income growth. The steady decline of its traditional linear TV business, streaming losses, and the severe disruption from COVID-19 – which shut down parks, film production, and theatrical releases – have all weighed on profitability. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. However, now Jefferies analyst James Heaney believes the company has 'finally righted the ship and the drivers ahead can change this dynamic.' So, what are these drivers? For one, Heaney had previously been worried about growth in Disney's Experiences segment – which accounts for roughly 60% of the company's operating income – given a 'tough macro environment' and the anticipated competitive pressure from the opening of Universal's Epic Universe. However, more recent data on trends at Walt Disney World support management's upbeat commentary in May, particularly regarding forward bookings, thereby 'reducing slowdown risks' in FY25. And looking ahead to FY26, the Experiences segment appears 'well-positioned,' with two new cruise ships set to launch and Epic Universe potentially shifting from a headwind to an 'Orlando traffic tailwind.' The analyst believes this 'creates a fundamentally stronger set-up,' projecting ~10% operating income growth in FY26 and 8% in FY27, compared to just 3.6% in FY24. Next, Heaney sees potential for a meaningful revenue boost from Disney's cruise business, estimating that the launch of two new ships in the first quarter of 2026 could generate an incremental $1 billion to $1.5 billion in annualized revenue (based on comparisons with Norwegian Cruise Line Holdings). As a result, the analyst is now calling for 14% year-over-year growth for the Resorts and Vacations segment, up from the previous forecast of 8%. Third, Heaney thinks that Disney's DTC (direct-to-consumer) segment will be a key driver of operating income growth, estimating a CAGR (compound annual growth rate) of over 130%, with margins expanding from just 0.6% in FY24 to more than 13% by FY28. In FQ2, Disney outperformed modest expectations around subscriber losses, helped by the success of Moana 2. The company continues to lean into its 'key differentiations' – including bundling, theatrical releases, and sports content – and early indicators suggest this approach is gaining traction. Visits to Disney+ have grown more than 40% YoY for three consecutive months. 'Stronger user growth and content coupled with advertising (new Amazon partnership) should drive enhanced scale and margins,' Heaney went on to say. Lastly, Disney's content and sports are 'on the right path.' Recent successes like Moana 2, Lilo & Stitch, and Andor have helped build a foundation, but the upcoming slate – including The Bear, Fantastic Four, Zootopia 2, and Avatar 3 – suggests a pipeline of strong releases. On the sports side, the analyst expects the launch of ESPN's direct-to-consumer service this fall will significantly increase ARPU (average revenue per user) in the Sports segment – anticipating a 25% YoY gain – that should 'serve as a catalyst to driving higher overall DIS CTV ad rev.' Taking all of this into account, Heaney is ready to shift gears, upgrading his rating on Disney stock from Hold to Buy. He's also lifting his price target from $100 to $144, pointing to a potential upside of 16% from here. (To watch Heaney's track record, click here) Heaney joins plenty of his colleagues in the bull camp; 15 others see the stock as a Buy while the addition of 3 Holds can't detract from a Strong Buy consensus rating. Going by the $129.24 average price target, shares will gain 4% in the months ahead. (See Disney stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
2 days ago
- Yahoo
4th of July record-breaking travel forecast: Where storms, traffic and crowds are expected to hit hardest
For some people, the Fourth of July is all about backyard barbecues and watching their hometown fireworks show. Millions of others, however, are getting out of town: AAA reports a record-breaking 72.2 million Americans will travel more than 50 miles between June 28 and July 6 — an estimated 61.6 million drivers and 5.84 million fliers. Meanwhile, TSA predicts even more fliers — 18.5 million, to be specific. Whether or not you have a summer holiday planned, all of that movement means roads, airports and public transit will be more crowded than usual ... and you may need to adjust your schedule accordingly. Heading out of town this week — or just want to know how to navigate travel during one of the biggest travel holidays of the year? Here's what to keep in mind. With Independence Day falling on a Friday this year, more people are taking advantage of the long weekend and traveling to far-off destinations via airplane. According to a report by flight discovery site Going, popular cities this year for travel include Denver, Chicago, London, San Diego and New York. And with the opening of the new theme park Epic Universe, more and more people are heading to Orlando as well. Internationally, AAA reports that Vancouver, Canada, is the top spot for July Fourth travelers, while European destinations like Rome, Paris, London and Barcelona are also popular. Meanwhile, about 4.78 million people are expected to travel by bus, train or ship this Fourth of July, marking a 7.4% jump from last year. Alaska cruises are particularly popular, per AAA. Early-week storms could cause delays, especially for airline passengers. According to Fox Weather, storms are expected from Florida up through Ohio and Pennsylvania on Monday, with possible flight delays in cities like Tampa, Cleveland and Pittsburgh. By Tuesday, the stormy weather moves up the East Coast, threatening major airports in New York, Boston, and Washington, D.C. Things should clear up in the Northeast and Midwest by Wednesday, but the Southeast — especially Florida — could see rain right through the holiday. Still putting together your plans? Fox Weather reports that cities like Columbus, St. Louis and Chicago are expected to have some of the best weather for holiday celebrations. This weekend is not the time to try the viral TikTok 'airport theory.' It's recommended you arrive at the airport two hours before domestic flights and three hours before international flights — and with so many people en route this week, you'll want to stick to that plan, or risk missing your flight. Real ID regulations also went into effect on May 7, and you'll need it to get on a domestic flight. Don't have a Real ID yet? While you can still travel, you'll need to pack another acceptable form of ID, such as your passport. You can find a full list of acceptable IDs on TSA's website. And if you don't have a Real ID, you should get to the airport even earlier than that two-hour window for a domestic flight. That's because TSA has said that travelers who don't have a Real ID can expect additional identity screening at the airport. They recommend arriving three hours before a flight. While TSA Administrator Ha Nguyen McNeill said in a press release that the agency is working to ensure that their airport security efforts are 'prepared to handle the heavy rush of traffic,' they ask travelers to 'pack their patience, especially during peak travel days, as we work to provide maximum hospitality to our customers.' Taking a road trip? The good news is that gas prices are down for summer travel. According to the U.S. Energy Information Administration, the national average price for a gallon of regular gasoline is $3.21, which is roughly 23 cents lower than it was at this time last year. For those renting cars, AAA car rental partner Hertz anticipates that Thursday, July 3, will be the peak day for vehicle pickups, the company told Yahoo. Popular travel spots for rental cars include Orlando, Denver, Boston, Oahu, Hawaii, and Seattle. Want a big car for all your friends — and road trip snacks? The majority of renters are opting for SUVs and midsize sedans, so reserve as early as possible. But no matter what car you drive, you'll have to deal with traffic. According to transportation analytics firm INRIX, your best bet is to drive during the morning hours to avoid the worst traffic, as afternoons and evenings leading up to the holiday will be especially congested. Traffic is expected to build up on July 1 by early afternoon. Wednesday, July 2, will likely be the toughest traffic day, with heavy traffic predicted from noon all the way through 9 p.m. — so hitting the road in the morning is key. Early departures are also smart on Thursday, July 3, and Friday, July 4, when congestion is expected to start as early as noon. And for your return trip, aim to leave before late morning on Saturday, July 5, or before noon on Sunday, July 6.
The Irish Sun
2 days ago
- Entertainment
- The Irish Sun
Europe's newest theme park finally opens with mermaid, dragon and Viking themed lands
A HUGE new theme park has finally welcomed guests in Europe after being forced to delay its opening date. Hossoland in Poland was first announced back in 2017, and has Advertisement 3 Hossoland has finally opened in Poland Credit: Instagram 3 There will be 30 attractions inside Credit: Facebook It has since opened, with the official opening date on June 27. The theme park - in the village of Brojce which is around an hour from Szczecin - is spread across 400,000sqm. And inside are four themed zones. There is The Mermaid City, with the main attraction being the Advertisement Read more on theme parks Kingdom of Baltambrya will have the Poseidon ride, which is a swinging hammer experience. The Dragon Valley of the Mines will be a And finally there is the Land of the Other rides include chair rides, swinging ships, driving schools and playgrounds. Advertisement Most read in Family Exclusive Exclusive Overall there will be 30 attractions, although was originally meant to have 50. And it isn't fully open yet, according to guests, with some of the rides yet to be fully up and running. Inside Universal Epic Universe with incredible thrill rides and amazing food Said to want to rival Poland , some guests have been left less than impressed. One wrote: "This is supposed to be competition for Energylandia? 4 rollercoasters?" Advertisement This is because Others said the ticket prices were too high for the lack of rides. Another wrote: "The park still has attractions under construction, so lets hope those will be more thrilling." Some parents said that the park is great for younger guests with lots for them to do, but that there was a lack of adult rides. Advertisement Tickets cost 169PLN (£34.10) for guests over 120cm, or 1PLN (20p) for guests up to 85cm. Reduced tickets for anyone over the age of 65 or for pregnant guests are 149PLN (£30). This is for guests visiting during high season, from June 28 to August 31 with reduced tickets during the low season. The theme park will be open from 10am until 1pm in the summer season. Advertisement Here is 3 More of the rides are set to open Credit: Facebook
Yahoo
3 days ago
- Business
- Yahoo
Disney stock upgraded by Jefferies 'for four primary reasons'
Disney (DIS) is cruising for a higher stock price this summer, according to Jefferies analyst James Heaney. Heaney lifted his rating on Disney to Buy from Hold on Monday. His new price target of $144 assumes 18% upside ahead from the entertainment giant's current level of $124.84 per share. Yahoo Finance data shows Heaney is now one of the most bullish on the Street with respect to Disney. "We upgrade Disney to Buy for four primary reasons: 1) Now see limited risk of a second half parks slowdown from Epic Universe/Macro [economy]; 2) More positive on FY26 cruise [business] upside, Jefferies estimates $1 billion plus revenue uplift; 3) Continued direct-to-consumer margin expansion (0% FY24 to 13% plus by FY28 estimate); 4) View next six months content and sports slate favorably, including ESPN direct-to-consumer launch, Zootopia 2 and Avatar 3," Heaney wrote. Disney stock rose 2% in premarket trading on Monday. The stock is up 10% year to date, compared with a 4% advance for the Dow Jones Industrial Average (^DJI). "Disney has failed to grow operating income in FY16-FY24, but we believe this dynamic is set to change," Heaney added. His more bullish stance on Disney comes despite several headwinds facing the media giant. First, the media industry itself continues to face upheaval. Warner Bros. Discovery (WBD) said this month it will split up amid a shift to streaming that has financially hammered its legacy TV assets. The company joins rival Comcast (CMCSA) in separating TV operations from streaming assets. Meanwhile, Paramount (PARA) is still trying to close its merger deal with Skydance. Disney has repeatedly said it has no desire to spin off its TV networks, such as ABC, despite the industry challenges that have weighed on sales and profits. "I think it's harder [to split up] than most people realize. And the interesting thing is, for the past five to 10 years, we have been putting them together — linear TV content creates the streaming content. Now all of that has changed," former BET CEO and current Warner Bros. Discovery board member Debra Lee told Yahoo Finance earlier in June. Second, Disney is still smack in the middle of appointing a CEO to succeed Bob Iger. Four internal candidates are reportedly being considered for the coveted position, which Iger held from 2005 to 2020 before returning in November 2022. Those four are entertainment division co-chiefs Dana Walden and Alan Bergman, parks division head Josh D'Amaro, and ESPN chairman Jimmy Pitaro. Walden and D'Amaro are rumored to be top contenders. The search process must be executed flawlessly, following a high-profile bungling last time, when former CEO Bob Chapek was fired in favor of bringing back Iger. Chapek's brusque management style famously clashed with the many creatives who keep the magic inside of Disney's content and theme parks. A CEO decision is widely expected by year-end. "I think the biggest skillset you have to have is a gift of a real strategic business sense because there's a bunch of assets at Disney that are globally deployed," Candle Media CEO and former top Disney executive Kevin Mayer said on Yahoo Finance's Opening Bid podcast (watch above). "It's multifaceted, from theme parks to consumer products to movies to film to TV to Disney+ to Hulu to ESPN. You got to manage a lot, and then you have to also decide, what assets do we keep? What assets do we add?" Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
3 days ago
- Business
- CNBC
Buy Disney as cruise and streaming businesses pick up steam, Jefferies says
Jefferies sees a rosy outlook ahead for Walt Disney . The bank upgraded shares of the entertainment giant to buy from hold. Analyst Ed Alter also lifted his price target to $144 per share from $100, implying nearly 18% upside from Friday's close. Alter pointed to the launch of two new cruise ships in the first quarter of next year as a catalyst. Together, these ships could drive incremental revenue up between $1 billion to $1.5 billion. The analyst also applauded Disney's direct-to-consumer business, especially the content and sports slate offered on its streaming platform, Disney+. Names such as "Moana 2" and "Lilo and Stitch" have been recent bright spots, while audiences can look forward to the upcoming releases of Avatar 3 and Zootopia 2 , alongside the launch of ESPN's new streaming service. DIS YTD mountain DIS YTD chart "DIS is leaning more and more into its key differentiations of bundling, studio releases, and sports, where our data suggests this strategy is working, with DIS+ web visits growing 40%+ y/y in each of last 3 months," he wrote. "Stronger user growth and content coupled with advertising (new AMZN partnership) should drive enhanced scale and margins." While a tough macroeconomic backdrop and competition from the opening of Universal's Epic Universe had previously been cause for concern, Alter said data on Disney's trends show that traffic remains strong. In fact, Orlando traffic may actually pick up from the launch of Epic Universe alongside Disney's two new cruise ships. "This creates a fundamentally stronger set-up for Exp; we est ~10% Op. Inc growth in FY26 and +8% in FY27 (vs. +3.6% in FY24)," he added. Shares rose more than 1% following the Jefferies upgrade. Year to date, the stock is up nearly 10%. Disney shares are well liked by analysts in general. LSEG data shows that 27 of 34 analysts covering the stock rate it a buy or strong buy.
