The Walt Disney Co. (NYSE:DIS) is expanding its fleet, announcing the launch of a new cruise ship that will set sail from Tokyo, Japan, starting in FY28. This will be the ninth vessel added to the entertainment giant’s growing fleet.
Disney’s New Ship
Disney’s new ship will be modeled after the largest vessel in the group, named Wish. Disney has partnered with Tokyo’s Oriental Land Company (OLC), the operator of Tokyo Disneyland, for the ship. The currently unnamed ship is expected to have a maximum capacity of 4,000 passengers and is estimated to generate about 100 billion yen ($621.77 million) in annual sales within several years after its launch.
Disney currently operates five cruise ships and, in addition to the Tokyo-based vessel, plans to add three more, including one based in Singapore in 2025.
Why Is Disney Expanding its Cruise Ship Fleet?
Disney’s fleet expansion is part of its $60 billion investment in its theme parks and cruise business. In the March quarter, the company’s cruise business, which is part of its parks and experiences division, comprised more than 30% of its fiscal Q2 revenues of $22.1 billion.
This expansion comes as the global cruise industry rebounds from the COVID-19 pandemic, with Disney targeting families with this launch.
Is Disney a Buy, Sell, or Hold?
Analysts remain bullish about DIS stock, with a Strong Buy consensus rating based on 21 Buys and five Holds. Over the past year, DIS has increased by more than 8%, and the average DIS price target of $128.04 implies an upside potential of 32.9% from current levels.
