J.P. Morgan Defends Disney Amid Multiple Downgrades
Walt Disney Co (NYSE: DIS) was downgraded by a number of analysts after the company reported its FY3Q15 results and lowered its growth outlook for the cable segment.
The company reduced its guidance for domestic cable affiliate fee growth to the lower end of its high-single-digit F13-F17 CAGR. OI is estimated at mid-single-digit growth, down from high-single-digits. Walt Disney also projected a $500mm currency headwind to total F2016 OI.
Jefferies analyst John Janedis downgraded the company from Buy to Hold, while reducing the price target from $125 to $112. BMO Capital Markets analyst Daniel Salmon downgraded Walt Disney to Market Perform, while reducing the price target from $125 to $110.
JP Morgan analyst Alexia Quadrani maintained an Overweight rating on the company, saying that stock weakness presented a "buying opportunity."
Quadrani mentioned that Walt Disney had reported another earnings beat, with F3Q EPS of $1.45, "nicely ahead" of the JP Morgan estimate of $1.40 and consensus expectations of $1.41.
"Upside came primarily from the Studio and Consumer Products (Frozen still a meaningful contributor while the stronger film slate overcame Tomorrowland), and the Parks delivered further margin upside to offset headwinds abroad," Quadrani wrote.
Latest Ratings for DIS
|Jan 2017||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
|Jan 2017||BMO Capital||Downgrades||Market Perform||Underperform|
|Jan 2017||Goldman Sachs||Upgrades||Neutral||Buy|
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