Nomura Securities Maintains a 'Buy' on Walt Disney (DIS); Mouse Drops Clues of Long-Term Growth Ahead
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Price: $106.85 +1.96%
Rating Summary:
35 Buy, 19 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
35 Buy, 19 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Walt Disney (NYSE: DIS) price target raised from $44 to $46.
Analyst, Michael Nathanson, said, "After the close, Disney posted F1Q12 EPS of $0.80, well ahead of our $0.72 estimate and $0.71 consensus. We estimate $0.04 of the beat came from lower taxes, with the remainder from 8% higher EBIT. Three divisions―Cable Networks, Studio and U.S. Parks (in order of impact)―drove the operating profit upside and helped offset lower results in Broadcasting, Interactive and Consumer Products."
"We want to stress that the revenue shortfall (0.6% vs. 4% estimate) was delivered by the lowest-valued and most volatile revenue divisions―Studio, Consumer Products and Interactive. As it was last fall, we think any stock weakness due to this fact should be a signal to buy, as we strongly believe that the core DIS drivers (ESPN and Park margins) are intact...While there could be some near-term noise due to the timing of cable programming expenses, the John Carter release and costs associated with Disney’s myriad new park initiatives, we would be strong buyers on weakness, as we believe Disney’s assets are well positioned to above-peer growth for the foreseeable future."
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 $40.98 yesterday.
Analyst, Michael Nathanson, said, "After the close, Disney posted F1Q12 EPS of $0.80, well ahead of our $0.72 estimate and $0.71 consensus. We estimate $0.04 of the beat came from lower taxes, with the remainder from 8% higher EBIT. Three divisions―Cable Networks, Studio and U.S. Parks (in order of impact)―drove the operating profit upside and helped offset lower results in Broadcasting, Interactive and Consumer Products."
"We want to stress that the revenue shortfall (0.6% vs. 4% estimate) was delivered by the lowest-valued and most volatile revenue divisions―Studio, Consumer Products and Interactive. As it was last fall, we think any stock weakness due to this fact should be a signal to buy, as we strongly believe that the core DIS drivers (ESPN and Park margins) are intact...While there could be some near-term noise due to the timing of cable programming expenses, the John Carter release and costs associated with Disney’s myriad new park initiatives, we would be strong buyers on weakness, as we believe Disney’s assets are well positioned to above-peer growth for the foreseeable future."
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 $40.98 yesterday.
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