Disney (DIS): Shanghai Profit Potential Looks Surprisingly High - FBR

FBR Capital analyst, Barton Crockett, believes consensus views underestimate the margin and profit potential of this park. The analyst sees this as a park that can be profitable near term and, over time, settle into operating margins well into the 30%-40% range, on revenues eventually topping $2B. The surprisingly high profit potential comes from pairing the lower cost structure of a developing country with premium pricing and strong consumer interest. With a 43% equity stake, and 70% of the park's management fee, Walt Disney (NYSE: DIS) will retain close to one-half of this park's profits.

No change to Outperform rating or price target of $111.00

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 $99.00 yesterday.

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