At the D23 Expo held this weekend, Walt Disney (DIS) finally shed light on its $60 billion theme park and cruise expansion plans. Although the investment was initially announced in September 2023, details were not provided until now.
New Attractions in Disney Parks
Major developments are planned for parks in California, France, and China. Highlights include “Marvel,” “Avatar,” and “Coco”-themed rides at Disney California Adventure. Meanwhile, Disneyland Paris will debut its first-ever “Lion King” water-based experience, while Shanghai and Hong Kong will welcome a new “Spider-Man” roller coaster.
In Florida, the Magic Kingdom will see its largest expansion yet, adding new lands themed around classic villains and Pixar’s “Cars.”
In addition to these park expansions, Disney plans to add four new cruise ships, increasing its fleet to 13 vessels by 2031.
Reasons Behind Huge Expansion
These plans come in response to rising competition from Comcast’s (CMCSA) Universal Studios, which is set to open a new theme park near Walt Disney World in Florida in 2025. Furthermore, recent ticket price hikes and inflation have impacted the performance of the company’s theme parks.
In its recently announced Q3 earnings report, Disney’s theme park revenues rose by just 2% year-over-year, adding more pressure on Disney to attract more visitors.
What Is the Price Target for DIS Stock?
Despite weakness in theme parks, analysts are bullish on the stock due to the strong momentum in the company’s Entertainment and Sports segments.
On TipRanks, DIS has a Strong Buy consensus rating based on 19 Buy and five Hold ratings. The analysts’ average price target on Disney stock of $118.25 implies an upside potential of 37.17%. Shares of the company have declined 4.1% year-to-date.
