Disney will be re-gifting the classic animated feature “The Lion King” as a live-action version with a new cast that includes Beyoncé, Donald Glover and Seth Rogen.
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In an exclusive interview on FOX Business’ “The Claman Countdown,” BAML SNR Media and Entertainment Analyst Jessica Reif Ehrlich said the new film will take Disney’s stock to new heights and possibly reach a price target of $168.
“'The Lion King' is another feather in Disney’s cap," she said on Tuesday.
The entertainment company has a dominant presence in the current U.S. box office with an estimated 50 percent stake, according to Ehrlich. She said the movie is likely to be “one of the biggest of the year,” appealing to all audiences.
"The Lion King" opened last week in China, where it had estimated earnings of $54.7 million in the country’s box office, putting it on course to being one of the most successful Disney films in the world's most populous country.
Disney is hoping to boost its stock price with a new source of revenue in its streaming service, Disney+, which is expected to launch in November. Its competitors will include Netflix, AT&T-owned WarnerMedia HBO Max and Apple TV+.
“Netflix is the current incumbent, but Disney is coming at it from all sides. They have amazing content [and] a lot of original content from their movies and spinoffs,” Ehrlich said.
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Disney+ is expected to hit the market at a price point of $6.99, a less expensive option for consumers than Netflix and Amazon Prime price point at $9 and HBO’s $15.
“An amazing user interface,” Ehrlich said of Disney’s online streaming service. “The price point, shocking…It’s really a very compelling product.”
Disney stock closed at $144 a share at the end of Tuesday trading.