Jim Lebenthal spoke on CNBC's "Fast Money Halftime Report" about Walt Disney Co (NYSE:DIS), which got two bullish calls on Wednesday. Wells Fargo upgraded the stock to Buy, with a price target of $182 and KeyBanc initiated with Overweight and a price target of $177.
Lebenthal owns the stock and he sees it moving higher. He said these analysts expect Disney to catch up with the subscriber count of Netflix Inc (NASDAQ:NFLX) in the next year or two.
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Netflix's market cap is around $225 billion, while Disney's is $280 and that means every other business in Disney is valued at $55, explained Lebenthal. Those other businesses earned $17 billion in 2019 which sets the multiple at around three times, he added. Lebenthal finds that way too cheap and he thinks the sum of parts completely supports a long position in Disney.
Pete Najarian closed his long position recently although he loves the company. It feels to him the stock is a little bit lofty because of a high price-to-earnings multiple so he is waiting for any kind of a pullback to step in again.