Deutsche Bank Has Buy on Disney

Deutsche Bank is out with a research report on Walt Disney

and it has a Buy rating and a $48 price target on shares after it reported earnings. In a note to clients, Deutsche Bank writes, "While a portion of the F4Q11 beat was content timing relative to our model (Netflix, Pirates 4 Int'l DVD), we are also seeing stronger-than-expected ESPN ad trends and a higher margin at the Disney Channels. Thus, we are raising FY12 EBIT by $119m to $9.432b (now 6.9% growth Y/Y) and EPS by $0.03 to $2.82 (now 11.0% Y/Y). Mgmt mentioned network scatter pricing softened the past few weeks (from ABC's above-peers 25% over upfront pricing to 15-20% in our estimation, still healthy). We expect ABC F1Q12 adv. is up 1-2%. ESPN is up in F1Q ad sales despite a 7% tough comp against 2 BCS bowl games and a +27% core Y/Y comp. The NBA game cancellations will have little impact, in our view. ABC Family ad sales is >10%. Park trends appear stable with flat rooms on the books (better than last two qtrs) and pricing up 3% (lower given holiday qtr), while mgmt indicated Park margins would expand in FY12. F1Q12E EPS is $0.65, -4% Y/Y on tough Film and political comps, F2Q12E $0.56, up 14% Y/Y, F3Q12E $0.91, up 15% and F4Q12E $0.71, up 20%." Shares of DIS are up $1.28 in pre-market trading to $35.92, a gain of 3.7%.