Walt Disney ( DIS -0.67% ) gives investors many ways to win.
So says Citigroup analyst Jason Bazinet. On Wednesday, Bazinet reiterated his buy rating on Disney's stock and boosted his price forecast from $150 to $175. His new target price represents potential gains to shareholders of roughly 16% from the stock's current price near $151.
Bazinet foresees a "measured recovery" in Disney's parks, movie studios, and cable networks, as the coronavirus pandemic eventually subsides. Additionally, Bazinet highlighted the blockbuster performance of Disney+, the company's streaming service that's seen its subscriber base soar to over 73 million in its first year.
Disney+ has been a massive hit for the entertainment giant. For years, analysts and investors alike grew increasingly concerned that the trend toward streaming services and away from traditional TV packages would disrupt Disney's empire. But now, thanks to the success of Disney+, the company has become a powerful force in the streaming arena.
With Disney+ and other streaming services, such as Hulu and ESPN+, fueling its growth, Walt Disney is well positioned to profit from the global trend toward internet-delivered entertainment options. Thus, it seems likely that its stock will reach Bazinet's $175 price target in short order, and long-term investors could enjoy even greater gains in the years ahead.