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

Citigroup raised its rating on Walt Disney

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.