UPDATE: ISI Group Initiates Coverage on The Walt Disney Company on Investment in Core Competencies

In a report published Wednesday, ISI Group analyst Vijay Jayant initiated coverage on

with a Neutral rating and $68.00 price target. In the report, ISI Group noted, “We are initiating coverage of The Walt Disney Company (DIS) shares with a Neutral rating and a $68 price target for year-end 2014. The most important assets here are the Cable Networks, which account for more than 60% of Disney's operating profit -- ESPN is 80% owned, the A&E Networks group (A&E, History, Bio, Lifetime) is 50% owned, and the rest are wholly-owned (Disney, ABC Family, Toon Disney, etc.). The core driver is the ESPN set of networks, the go-to destination for sports fans and advertisers. ESPN has refocused its sports strategy just in the US where we still see improving operating leverage as the key expensive long-term sports rights are locked in for the foreseeable future. Disney's Film & TV Studios are financially volatile but are at the heart of the creativity that drives monetization across its Parks & Resorts, Broadcasting (ABC), Consumer Products, and Interactive Media divisions.” The Walt Disney Company closed on Tuesday at $62.83.