Wunderlich Securities Reiterates Hold Rating, $50 PT on The Walt Disney Company

In a report published Wednesday, Wunderlich Securities reiterated its Hold rating and $50.00 price target on The Walt Disney Company DIS, related to Disney's recently announced acquisition of Lucasfilm. Wunderlich Securities noted, “We believe that CEO Robert Iger has made another compelling acquisition from Disney's advantaged strategic position, with Lucasfilm to be monetized across the studio, consumer products, and parks. We actually believe that the $4.05bn price may have been somewhat contained by George Lucas's desire to house his family-friendly characters at Disney. The entire valuation is premised on Star Wars, with free plays on any Indiana Jones revival and the modest value ILM effects business. We suspect that the Lucasfilm deal could end up having a higher ROI than the Pixar deal, but probably below that on Marvel. A biannual annuity approach to Star Wars suggests a floor $3.5bn public value but optimistic assumptions could easily support $5.2bn+.” The Walt Disney Company closed on Tuesday at $50.08.