Disney parks across the globe have been shut down since March 16 and Disney fans are anxiously awaiting the reopening, but a new report suggests that Disney Parks might not reopen until 2021.
UBS Analyst John Hodulik, who often comments on media investments, said all aspects of Disney are at risk because of COVID-19, from their movie releases to their theme parks.
His base case now assumes that the company won’t be able to reopen its parks until Jan. 1, 2021, and he expects the company’s attractions business to remain pressured even beyond then, according to MarketWatch report.
Hodulik said the company’s theme parks might feel pressure from investors even beyond that open date due to the new normal at the park.
“(T)he economic recession plus the need for social distancing, new health precautions, the lack of travel and crowd aversion are likely to make this business less profitable until there is a widely available vaccine,” Hodulik said.
He added the parks may “regain their recent operating cadence in (about) 18 months, coinciding with the earliest expectations for a widely available vaccine for COVID-19.”
Concerns over the parks reopening has led to a 3% drop off in the stock prices.