Citigroup Reiterates Buy Rating, $54 PT on The Walt Disney Company Ahead of Tuesday Earnings Report

In a report published Monday, Citigroup reiterated its Buy rating and $54.00 price target on The Walt Disney Company

. Citigroup noted, “We look for $11.18 billion (+3.7%) in revenue vs. consensus at $11.21 billion (+4.0%). We look for EBIT of $2.24 billion vs. consensus at $2.29 billion. All told, we expect EPS of $0.76, in line with consensus. We estimate Cable Net revenue will increase 5.1%. We believe advertising will grow 1.8% due to more modest ad growth at ESPN while we expect affiliate fee growth to moderate to 7.2% vs. 11.4% in 1Q12. However, we expect flattish EBIT growth of 1.6% due to higher college football, NFL and NBA costs as management expects U.S. sports outlays to increase $170 million in 1Q13.” The Walt Disney Company closed on Friday at $54.59.