DIS Drops Despite California Parks Reopening

The most magical place on earth will reopen Disneyland Park and Disney California Adventure on July 17

The shares of Walt Disney Co (NYSE: DIS) are down 3.6% at $117.68 this morning, after the so-called "most magical place on earth" announced it will reopen Disneyland Park and Disney California Adventure on July 17, pending approval from local and state authorities. The California theme parks have been closed since March 14, in an effort to curb the spread of COVID-19. Though they are now set to reopen, experiences that draw large crowds such as parades, spectacles and character meet-and-greets will be temporarily unavailable.

Despite its avid fan base, DIS has not been an exception to the negative impact the coronavirus pandemic has had on the tourism industry. On the charts, the equity has been digging itself out of its mid-March lows near the $79 level. Though it was able to break north of its 20-day moving average in late May, DIS has a long way to go before it reaches its 2019 all-time-high of $153.41 again, as shares found overhead pressure at the $125 mark earlier this week. Nonetheless, DIS sports a 26% lead for the quarter.

Earlier this morning, DIS landed a price-target hike to $105 from $96 at Bernstein. Analysts were evenly split toward the equity coming into today, with nine of the 18 in question carrying a "buy" or better, and the remaining nine sporting a "hold" or worse recommendation. Meanwhile, the 12-month consensus target price of $120.29 is a meek 1.55% discount to current levels.