'Halftime Report' Traders Weigh In On Disney

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Jim Lebenthal spoke on CNBC's "Fast Money Halftime Report" about Walt Disney Co 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 NFLX in the next year or two.

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.

Posted In: MediaCNBCFast Money Halftime ReportPete Najarian
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