Stifel Raises Disney's Price Target Following Stronger Than Expected Results

Benjamin Mogil of Stifel on Wednesday reiterated a buy rating on

with a price target raised to $115 from a previous $110 following stronger than expected results with various positive read through intact for the year. "While ‘Frozen' was certainly part of the story, structurally the studio continues to benefit from the shift in home entertainment to digital and continued international licensing growth," Mogil wrote. "Parks occupancy and current quarter pacing trends were similar strong." Mogil does note that ESPN ad revenue and ratins were weaker in the quarter but the company noted improvements in the current quarter ratings and ad market are being seen. The analyst also suggests that margins will be pressured in the quarter at ESPN with new NFL and BCS deals with de-acceleration in the second half on flat costs.