Nomura Securities Maintains a 'Buy' on Walt Disney (DIS); Time For Investments To Start Paying Off

Nomura Securities maintains a 'Buy' on Walt Disney (NYSE: DIS) price target lowered $1 to $43.

Nomura analyst, Michael Nathanson, said, "Over the past year, investors looking for that old Disney positive earnings revisions magic have been clearly disappointed. The bitter irony is that the negative earnings surprises occurred in Studio and Interactive – lower valued divisions – while the company’s core drivers of Cable Networks and Theme Parks remained strong performers."

"Though Cable Networks and U.S. Parks actually exceeded our initial
forecasts, Disney’s box office revenues and acquisition accounting charges for Playdom produced over $450 million (more than 5% of total Disney OI) in negative operating income revisions."

"We continue to believe DIS’ multiple can return to a premium as
incremental Park margins recover...We are modestly lowering FY12 EPS estimate by $0.02 to $2.94, still $0.03 ahead of consensus, to reflect more conservative Interactive assumptions. For FY13, we are reducing EPS by a penny to $3.32."

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 $35.92 yesterday.

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