Disney Stock Struggles on Heels of Shanghai Park Closure

Analysts were brimming with optimism ahead of today's news

Managing Editor
Jan 24, 2020 at 8:59 AM
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The impact of the fatal coronavirus is at it again, this time forcing the closure of Walt Disney Co's (NYSE:DIS) Shanghai park, in an attempt to curb the rapid spread of the highly contagious illness. Asia has been slammed by the disease this week, causing a dip in stocks worldwide, though last night markets mostly recovered after-hours in response to the World Health Organization (WHO) decision not to declare a public health emergency. This morning, DIS is down 0.7% in electronic trading. 

The Dow component yesterday pulled back to the supportive 80-day moving average, and remains an impressive 28% higher year-over-year. The 80-day's line of support also coincides with the equity's $140 level, seemingly ready to step in and cushion the shares again today amid the park-closing setback. 

Analysts weren't phased coming into today's trading. Specifically, 12 of 15 sport a "buy" or "strong buy" recommendation, while the remaining three carry a tepid "hold" and zero "sells" on the books. Plus, the stock's average 12-month price target of $157.76 comes in 10% above Thursday night's close.
 

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