Walt Disney's two new cruise ships could contribute over $1 billion in revenue
Walt Disney Co (NYSE:DIS) stock is 1.6% higher to trade at $123.61 at last check, after Jefferies upgraded it to "buy" from "hold," and hiked its price objective to $144 from $100. The firm cited two new cruise ships that may contribute over $1 billion in revenue, limited risk of a park slowdown in the second half of 2025, a solid six-month content and sports slate, and direct-to-consumer margin expansion.
DIS surged to a two-year high of $124.69 right out of the gate, and is on track for its sixth-straight daily gain. Shares are also looking build on May's 24.3% gain -- the best monthly performance since January 2023 -- with a 9.3% pop for June. In the last 12 months, DIS added 24.4%.
Short-term options traders have been much more bearish than usual. This is per Walt Disney stock's Schaeffer's put/call open interest ratio (SOIR), which ranks in the 84th percentile of readings from the past 12 months. An unwinding of pessimism could fuel additional tailwinds for the shares.
Options are looking quite affordable. The stock's Schaeffer's Volatility Index (SVI) of 18% sits in the 1st percentile of its annual range, indicating options traders are currently pricing in low volatility expectations. Plus, its Schaeffer’s Volatility Scorecard (SVS) score of 97 out of 100 indicates DIS has historically delivered larger-than-expected price swings.