News Update: Morgan Stanley Raises Estimates, Price Target For Disney (NYSE: DIS)

2/23/2010- Morgan Stanley analysts are raising their estimates and price target for Walt Disney Co. (NYSE:DIS) following Q1 results and Q2 advertising trends that highlighted advertising strength at ESPN and the ABC stations.

Analysts Benjamin Swinburne and Kristi Bonner said, "Relative to our OW thesis, the 1Q results and 2Q advertising trends highlighted advertising strength at ESPN and the ABC stations. In addition, stronger-than-expected affiliate revenue growth from ESPNU also helped the cable networks segment, which saw 20%+ consolidated 1Q10 EBIT growth. Two other legs to our thesis - a consumer/theme park recovery and a creative cycle at the film studio - remain ahead of the stock. However, both segments saw stronger-than-expected cost management, as margins were ahead for 1Q10. We are raising our 2010 and 2011 estimates to $1.98 and $2.35, respectively. Our new 2010 estimates reflect a faster recovery in broadcast advertising vs. our prior model at both the ABC network and the local TV stations."

The bank has a $37 price target on the stock.

Category:

News & Politics

Tags:

• Finance
• Investing
• Stock
• Alerts
• Trends
• Trading
• Equities
• Charts
• Uptrends
• Downtrends
• SmarTrend