On Wednesday, May 20, Florida’s Disney Springs (DIS) will begin its initial reopening, Matt Simon, VP of Disney Springs, has announced. He called the move “a great first step in the phased reopening of Walt Disney World Resort.”
“While our theme parks and resort hotels remain temporarily closed, the phased reopening of Disney Springs is a welcome milestone as we navigate through this unprecedented time together as responsibly as we can” Simon wrote.
Based on government requirements, as well as guidance from health authorities and government agencies, DIS will implement several new health and safety measures at the outdoor shopping, dining, and entertainment complex.
For instance, all guests 3 years and older, along with cast members will have to wear a face covering while visiting Disney Springs. Visitors will also be requested to undergo temperature screenings, and the number of guests will be limited during this initial phase.
DIS also said that it has increased cleaning and disinfection in high-traffic areas and will introduce hand-washing stations with hand sanitizer.
On May 27, three Disney-owned and -operated stores and venues will reopen, namely: World of Disney, D-Luxe Burger (mobile order) and the Marketplace Co-Op.
Analysts have a cautiously optimistic outlook on DIS stock right now with a Moderate Buy consensus and a $121 average price target (11% upside potential). The stock has plunged 25% year-to-date. (See Disney stock analysis on TipRanks).
“Disney’s 2Q-FY20 results and outlook highlighted the significant operating and financial disruption caused by the ongoing pandemic” writes RBC Capital’s Kutgun Maral.
He has a hold rating on the stock and recently trimmed his price target from $110 to $108 (1% downside potential). “The acute pressures to theme parks, studio, and media networks limit earnings visibility or confidence that estimates have bottomed, as demonstrated by the company foregoing its next semi-annual dividend” he explained.
“We continue to remain bullish on Disney’s strategic vision, quality of assets, and execution, but remain on the sidelines until there is greater clarity on the post- coronavirus world” the analyst concluded.
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