Disney stock surges toward record high after Morgan Stanley boosts price target

Analysts at Morgan Stanley raised their price target on shares of the Walt Disney Co. to $160 from $135 on Thursday, saying the media giant's streaming service, Disney+, will rack up users more quickly than previously expected. Disney's stock surged 3.5% in midday trading to pace the Dow Jones Industrial Average's gainers, and to it on track for a record close. Disney+ should bring in 130 million global subscribers by 2024, Morgan Stanley analyst Benjamin Swinburne wrote in a note to clients, reiterating his overweight rating on the stock. The streaming service's global launch is rolling out faster than he expected, Swinburne wrote, and Disney+ is backed by more intellectual property than he initially thought. "Stepping back and admittedly taking the long view, investing in Disney shares is a play on the durability of its IP," he wrote. Disney+ is set to launch in the U.S. on November 12. Shares of Disney have gained 28.3% in the year to date, while Dow has gained 11.9%.

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