UPDATE: Nomura Reiterates Buy Rating, Raises PT on The Walt Disney Company on Adjusted F1Q EPS
In a report published Wednesday, Nomura reiterated its Buy rating on The Walt Disney Company (NYSE: DIS), and raised its price target from $59.00 to $62.00.
Nomura noted, “Let the affiliate fees roll. Disney posted adjusted F1Q EPS of $0.79, $0.05 above our below-consensus estimate of $0.74. The quarter benefited from stronger results at Media Networks offset by weaker Park and Studio results. Consumer Products and Interactive were also positives in the quarter. Disney now appears poised to benefit from multiple drivers that were built over recent years. We estimate Cable Network affiliate fees to ramp in CY13 owing to the new deals Disney cut with distributors. We forecast FY13 U.S. Parks margins to expand by 140bps to 17.6% despite the headwinds from the new initiatives and even further in the next two years reaching back to peak levels. We maintain our Buy and raise our target by $3 to $62 to reflect a higher market multiple and increased estimates.”
The Walt Disney Company closed on Tuesday at $54.29.
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