Walt Disney (DIS) CapEx Bears Fruit

June 20, 2012 1:09 PM EDT
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Price: $107.66 +0.35%

Rating Summary:
    21 Buy, 17 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Shares of Walt Disney (NYSE: DIS) could benefit as the company is poised to improve growth and free up cash flow as it completes projects and transitions to the later phase of its multi-year cap ex cycle, according to analyst Tony Wible of Janney Capital. DIS should also benefit from new market opportunities tied to park expansion, new networks, new franchises, new cruise ships, new consumer concepts, and growing exposure to emerging economies.

Park investments are at the heart of Walt Disney’s growth moves. To date, they have made substantial investments in California Adventure, which debuted new attractions (Midway Games, The Little Mermaid), the new Cars Land area (opened last week), revamped entrance, and the World of Color.

“While there is clearly a direct benefit to attendance, we believe there is indirect benefit tied to crowd management, food sales, repeat visits, merchandise sales, hotel occupancy, and park hopper demand,” said Wible.

Janney Capital has a Buy rating on DIS and an estimate of $49.

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 $47.51 yesterday.

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