Two members of the Dow Jones Industrial Average – Disney (DIS) and Intel (INTC) – were each upgraded today by a research firm, helping the two post advances while the majority of the other members of the blue-chip index sit in the red.
DISNEY: Piper Jaffray raised Disney to Overweight from Neutral, based on the strength of its upcoming films and the positive outlook for its theme park business. The revenue growth of the conglomerate’s upcoming films is well-positioned to accelerate and should beat the Street’s expectations, wrote Piper’s Stan Meyers after analyzing the films. Specifically, Disney’s studio revenue should increase at a compound annual growth rate of 12.6% over the next three years, up from 8.1% over the past three years, the analyst forecast. Meanwhile, its theme parks should “get a lot more attractive” in light of the expected opening of Shanghai Disney Parks in June, its ability to target new demographic groups with upcoming Star Wars and Marvel attractions, and the recent trend of consumers spending more money on experiences, according to Meyers, who upped his price target on the shares to $120 from $105.
WHAT’S NOTABLE: Disney is slated to hold its annual shareholder meeting today, starting at 11:00 am ET.
INTEL: Baird upgraded Intel to Outperform from Neutral, citing the strength of the company’s data center business. The chip maker’s profits should start to increase in 2017, driven by the growth of its data center business, according to Baird analyst Tristan Gerra. Demand for Intel’s data center products is tracking above expectations, Gerra reported. Moreover, given advancements in its LTE technology, Intel looks better positioned than last quarter to grow its tier one smartphone business, believes the analyst, who raised his price target on Intel shares to $38 from $33.
PRICE ACTION: In early trading, Intel added 0.8% to $30.77 and Disney rose 1.1% to $98.11.
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