UPDATE: Nomura Cuts PT to $54 on Walt Disney on Mixed Quarter
Nomura reiterated its Buy rating on Walt Disney (NYSE: DIS) but cut its price target from $55 to $54.
Nomura noted, “Last night, Disney reported F4Q12 EPS of $0.68, in line with consensus but $0.01 below our estimate. Cable Networks provided the majority of the beat, offset by lower Parks and Studio results. Consumer Products and Interactive also drove some upside. We believe U.S. Parks margins expanded slightly helped by Disney Cruises. We believe investors should not give too much weight to one quarter and are often rewarded by taking a longer term view on Disney. While F1Q will now likely be a messy and complicated start to FY13, we still expect a strong back half of the year. Despite the higher growth initiative spending, we project U.S. Park margins to expand by 80bps in FY13. We will revisit our stimates and incorporate the Lucasfilm acquisition following DIS‟10-K filing."
Walt Disney closed at $50.04 on Thursday.
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