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Disney stock price forecast for Q4 2021 after delaying several films

By:
on Oct 18, 2021
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  • Disney shares on Monday fell 3.42% after announcing several film delays.
  • The company postponed release dates for a batch of Marvel films and the ‘Indiana Jones’ sequel.
  • The stock trades at a reasonable forward P/E ratio of 34.72 after the pullback.

On Monday, Walt Disney Co. (NYSE:DIS) shares nosedived 3.42% after the entertainment and media conglomerate announced several film delays over the next two years. The company postponed the release dates for a batch of Marvel movies and the ‘Indiana Jones’ sequel.

According to the company’s updated schedule, ‘Doctor Strange in the Multiverse of Madness’ moves to 6th May from 25th March 2022, while ‘Thor: Love and Thunder’, shifts to 8th July from 6th May, taking ‘Black Panther: Wakanda Forever’s initial slot, which moves to 11th November 2022.

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On the other hand, the ‘Indiana Jones’ sequel was initially scheduled to premiere on 29th July 2022 but has been delayed by 11 months, moving to 30th June 2023. ‘’The Marvels’, ‘Antman and the Wasp: Quantamania’ plus several unnamed titles also had their dates moved.

Is Disney still a good buy?

From an investment perspective, Disney shares trade at a steep P/E ratio of 278.64, however, its forward P/E ratio of 34.72 could get some value investors excited. 

Moreover, although analysts expect earnings to fall by more than 125% this year, they also forecast a rebound of nearly 105% next year and an annual growth rate of about 51% over the next five years.

Therefore, with the company also reportedly looking to shift towards a subscription-based revenue model by spinning off ESPN, Disney could be a compelling growth stock.

Source – TradingView

Technically, Disney shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has moved closer to the overbought conditions of the 14-day RSI. 

Therefore, with the stock trading at crucial support at $170.00, a rebound could be imminent. Investors could target profits at about $175.57, or higher at $180.74, while $166.15 and $160.52 are crucial support zones.

Time to buy the rebound?

In summary, although Disney shares trade at a steep P/E ratio of 275.64, the company offers exciting long-term growth prospects, making it a potential buy for long-term investors. 

Therefore, Monday’s sharp pullback could be an opportunity to invest in a high-quality blue-chip stock amid the film delays.