Disney (DIS): Is It Time to Buy?

It’s no secret, a large number of high-profile companies have taken a serious beating since the pandemic’s onset. Possibly none more well-known than Disney (DIS). COVID-19 has necessitated theme park Read More... The post Disney (DIS): Is It Time to Buy? appeared first on TipRanks Financial Blog.

Disney (DIS): Is It Time to Buy?

It’s no secret, a large number of high-profile companies have taken a serious beating since the pandemic’s onset. Possibly none more well-known than Disney (). COVID-19 has necessitated theme park closures, a halt of live film production, and a delayed movie release schedule – all resulting in last week’s crushing F2Q20 report.

Yet, Northland analyst Bernie McTernan argues that there are several reasons to remain positive on the House of Mouse.

Glimmers of hope were provided during the earnings call, as Disney announced it will reopen its Shanghai theme park next week on May 11. McTernan assumes that domestically, Disney’s parks will open in September. Nevertheless, the forced enclosures are set to impact the balance sheet for a while, and McTernan forecasts it will take “at least two years for Disney to generate the revenue/segment operating income they could have in FY'20.”

Disney has also taken emergency measures to preserve cash flow through the pandemic. The company has suspended the dividend, reduced capex and furloughed employees. Although drastic, in an environment which is likely resulting in negative FCF, McTernan believes the measures should “provide a margin of safety.”

“Importantly,” McTernan added, “We believe these levers can be switched back on when the operating environment begins to normalize.”

But there is another recent positive development for investors to consider. When Disney announced in April that the launch of its new streaming service Disney+ had exceeded expectations and already boasted 50 million global subscribers, the numbers took the Street by surprise. McTernan believes there’s more to come.

“We estimate Disney+ will reach 65M global subscribers by the end of September '20E and attain profitability in FY'23E, a year earlier than originally guided… As cord cutting grows, Disney+ is the reason to own the stock,” McTernan opined.

To this end, McTernan keeps a Buy rating on Disney, along with a $130 price target, which implies nearly 20% upside from current levels. (To watch McTernan’s track record, )

And what abut the rest of the Street? Based on 11 Buy ratings, 10 Holds and 1 Sell, Disney has a Moderate Buy consensus rating. With an average price target of $120.35, the analysts expect upside of nearly 12% over the coming months. (See Disney stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

The post Disney (DIS): Is It Time to Buy? appeared first on TipRanks Financial Blog.

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Can Seanergy Maritime Stock Add 150% Over the Next Year? This Analyst Says 'Yes'

Over the past 5 years, with significant shareholder dilution along the way, Seanergy Maritime (SHIP) stock has declined by an incredible 99.70%. As investment sage, Warren Buffet famously said, the Read More... The post Can Seanergy Maritime Stock Add 150% Over the Next Year? This Analyst Says 'Yes' appeared first on TipRanks Financial Blog.

Can Seanergy Maritime Stock Add 150% Over the Next Year? This Analyst Says 'Yes'

Over the past 5 years, with significant shareholder dilution along the way, Seanergy Maritime () stock has declined by an incredible 99.70%.

As investment sage, Warren Buffet famously said, the time to pick up undervalued companies is while there’s blood in the street, but is an investment in SHIP worth the risk?

It is, according to Maxim analyst Tate Sullivan. Sullivan reiterated a Buy rating on Seanergy shares, although reduced the price target from $0.50 to $0.40, due to the company’s increase in shares outstanding following equity raises in the first quarter. Nonetheless, upside from current levels is a massive 150%. (To watch Sullivan’s track record, )

To boost its balance sheet, in Q1, Seanergy raised equity through four public offerings, all in all raising roughly $25 million. Sullivan believes the equity raises will be put to good use.

“We believe most companies, including SHIP, demonstrated ongoing access to capital during the spread of COVID-19. We expect SHIP will use proceeds from this quarter's equity offerings to reduce debt, and as a result improve the company's ability to extend debt maturities,” the analyst said.

Through a fleet of 10 Capesize vessels, Seanergy provides marine dry bulk transportation services and is the only pure-play Capesize ship-owner publicly listed in the US. The industry has taken a hit since the pandemic’s onset, but following a COVID-19 related near standstill at certain locations, factory and port activity in China increased dramatically in April, the result of which, the BCI (the Baltic Capesize Index) increased by over 370%. Sullivan believes that based on more iron ore exports from Brazil to China, the BCI will continue to rebound in 2020.

Alas, the renewed activity and the index’s rise have resulted in an increase to Sullivan’s 2020 and 2021 estimates for SHIP. The analyst increased 2020 EBITDA from $24.6 million to $25.3 million and 2021’s estimates to $45 million (from $44.6 million).

Looking at the consensus breakdown, only one other analyst has thrown an opinion into the mix. However, the rating was also bullish, making the Street consensus a Moderate Buy. With the average price target coming in at $0.77, the possible upside is a monumental 484%.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

The post Can Seanergy Maritime Stock Add 150% Over the Next Year? This Analyst Says 'Yes' appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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