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Nomura Securities Reiterates Buy on Disney (DIS) Following Shanghai Visit

June 15, 2016 8:12 AM EDT
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Price: $117.19 -0.66%

Rating Summary:
    30 Buy, 19 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 44
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Nomura Securities reiterated a Buy rating and $115.00 price target on Walt Disney (NYSE: DIS) following a visit to the company's Shanghai location. Nomura believes that the parks' broad appeal will support attractive operating results as it ramps to full capacity.

Analyst Anthony DiClemente commented, "We visited Shanghai Disney earlier this week, and we were impressed. We believe its broad appeal will support attractive Parks operating results as it ramps to full capacity. With concerns around softening subscriber trends and margin compression at ESPN, Disney’s multiple has compressed by ~20% LTM. However, we believe the benefits associated with the Shanghai Resort and the resulting continued diversification away from Cable Networks will be supportive of the Disney narrative. We update our model to attempt to capture the impact of Disney’s Shanghai Resort. In aggregate, we estimate the park could deliver $150mn of EBITDA in 2018 using modest assumptions including single-digit margins and ~18 million attendees."

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $98.40 yesterday.



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