Ascendiant Capital Markets Rates Disney Top 2014 Pick in Entertainment-Media

In a report published Friday, Ascendiant Capital Markets analyst Jeffrey Logsdon rated

their top pick of 2014 in entertainment-media, reiterating Buy and raising its price target to $90.00 from $86.00. According to the report, DIS has an asset collection unrivaled in the industry that consistently produces above average earning growth. The premier entertainment company has a mix of uniquely profitable brands, unduplicatable franchises and assets, as well as best in class financials making it a core holding for growth investors as earnings continue to drive positive investor sentiment. “While always a leader in maximizing the cash-earnings generating utilization of its creative output in multiple platforms, Disney is accelerating that growth with the addition of LucasFilms and further enhancements to the Marvel portfolio of characters and products,” the report said. The report further asserted that EPS growth prospects are healthy going into FY2014 and should accelerate even more in late FY2015E and FY2016E with the opening of Shanghai Disney parks and the release of Marvel and Star Wars films. “Share repurchases will compliment organic growth,” the report said. “The $4 billion in annual repurchases expected in FY2014 should be accretive to EPS around current prices.” DIS closed Thursday at $76.57.