Market Overview

UPDATE: Citigroup Upgrades Walt Disney to Buy on 2014 EPS Multiple

Share:
Related DIS
How Much Is Star Wars Really Worth To Disney?
Hulu Adds More Value With Skinny Bundles, Original Series And Documentary Division
Hulu's 'Slow' Growth Is Not As Bearish As It Looks (Seeking Alpha)

Citigroup raised its rating on Walt Disney (NYSE: DIS) from Neutral to Buy and increased its price target from $50 to $54.

Citigroup noted, "During fiscal 2013, Disney acquired Lucasfilm ($4 billion) and will invest significantly in Parks ($500 million of opex investment). Together, these two items will conspire to push 2013 EPS downward. As such, our 2013 EPS moves from $3.38 to $3.29. This suggests that Disney's 2013 EPS apt to grow just 7% this fiscal year. … We apply a 14x P/E multiple to Disney's fiscal 2014 EPS of $3.83 to arrive at our $54 price target, up from $50 previously. As such, we're upgrading Disney from Neutral to Buy."

Walt Disney closed at $47.06 on Friday.

Latest Ratings for DIS

DateFirmActionFromTo
Apr 2016NomuraMaintainsBuy
Apr 2016Pivotal ResearchUpgradesHoldBuy
Apr 2016RBC CapitalInitiates Coverage onSector Perform

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (DIS)

View Comments and Join the Discussion!