Shares of Disney (NYSE: DIS) are hitting all-time highs this month, but the party could just be getting started. Within the past week, two different analysts have slapped what is now a Street-high price target of $175 on the media giant, translating into another 17% of upside in the coming year.
Consumer Edge Research is the latest Wall Street pro to wax bullish on Disney, initiating coverage on Monday with an "overweight" stock rating and a price goal of $175. Six days earlier, it was Bernie McTernan at Rosenblatt lifting his price target on the shares from $170 to $175. It's the cool place to be these days, and inevitably a gateway drug to $200 if things continue to go well for the House of Mouse. Let's get into why there's a good chance Disney stock will hit $175 in 2020.
Rosenblatt's McTernan calls Disney his top stop pick in media, largely based on the runaway success of Disney+. The premium streaming video service topped 10 million subscribers a day after its Nov. 12 launch, and McTernan thinks Disney is just getting started. He sees the subscriber base more than doubling to 21 million by the end of next month, naturally buoyed by the holidays. His target is a pretty ambitious 35 million subscribers by the end of the current fiscal year that ends in September.