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Nomura Securities Maintains a 'Buy' on Walt Disney (DIS); Are You Ready for 8 More Years of Football?

September 8, 2011 3:06 PM EDT
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Price: $122.36 +1.14%

Rating Summary:
    30 Buy, 19 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Nomura Securities maintains a 'Buy' on Walt Disney (NYSE: DIS) price target of $42.00.

Nomura analyst, Michael Nathanson, said, "Today, Disney’s ESPN and the NFL announced a new eight-year extension for its flagship Monday Night Football package. The deal begins in 2014 and includes multi-platform rights as well as certain non-U.S. markets..."

"How will Disney monetize this increased, but not unprecedented, step-up in sports costs? We expect affiliate fees and advertising to provide a strong cushion as it did back in the 2006 when the last NFL contract kicked in...On the affiliate fee side, we believe that ESPN has the bulk of their affiliate agreements coming due in 2012 to 2015, and we would expect ESPN to use the NFL again for another round of price increases."

For more ratings news on Walt Disney click here and for the rating history of Walt Disney click here.

Shares of Walt Disney closed at $32.63 yesterday.


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