Disney Worth $130 Ahead of Earnings And 'Star Wars: Episode VII'

In a report published Monday, Stifel analyst Benjamin Mogil maintained a Buy rating on Walt Disney Co DIS, while raising the price target from $120 to $130, ahead of the company’s earnings.

Analyst Benjamin Mogil said that there were “two major variables for performance,” namely exchange rate movements and the lag between the global release date of Star Wars: Episode VII The Force Awakens and the Chinese release date, which would impact the performance in the China box office. Mogil estimates total global box office at $2.2bn, with $700mn from the domestic market, $450mn from China and $1bn from the rest of the world.

In the report Stifel noted the tailwinds as:

1. Domestic market: An almost 100 percent increase in the number of IMAX screens since 2009, while 3D screens nearly quadrupling.
2. International market: Significant increase in screen and box office growth in major international markets, including China, Russia and Latin America.

The EPS estimate for FY16 has been raised from $5.74 to $5.96.