BofA Adds Disney To US-1 List: Why This Investor Says The Stock Is Headed To $200

Zinger Key Points
  • Gilman Hill Asset Management's Jenny Harrington agrees with BofA's Buy rating and a $191 price target for Disney.
  • Harrington says Disney can reach full-year earnings of about $10 per share, and with a 20-times multiple, would be trading around $200 per share.

The Walt Disney Co DIS was featured as the call of the day Monday on CNBC's "Fast Money Halftime Report."

What Happened: BofA added Disney to its US-1 list with a Buy rating and a $191 price target. 

"We think they are right in line," Gilman Hill Asset Management's Jenny Harrington said of the analyst call on CNBC.

Harrington's Take: Harrington continues to expect parks to rebound, which will drive international tourism numbers, she said.

As the rebound continues, she says Disney can reach full-year earnings of about $10 per share. If investors award Disney with a 20-times multiple, the stock would be trading around $200 per share at that valuation, Harrington explained.

"It's neat to see that they are right in line with that thinking," she said of BofA analysts. "I don't know how long it takes ... but it's definitely headed in the right direction. Parks killed it this quarter."

See Also: Here's Why Barron's Is Bullish On Disney Post Q1

Disney announced last week that parks, experiences and products revenue totaled $7.2 billion in its fiscal first quarter, representing an increase of more than 100% year-over-year.

DIS Price Action: Disney has traded between $129.26 and $203.02 over a 52-week period.

The stock was up 0.73% at $150.57 Monday afternoon.

Photo: Steven Miller from Flickr

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