Citigroup upgraded The Walt Disney Company (
) on Monday due to higher 2014 estimates.
The Citigroup analysts upgraded the company from "Neutral" to
"Buy" and boosted the price target from $50 to $54. The new target
is a +14.7% upside from Friday's closing price of $47.06.
Citigroup noted, "During fiscal 2013, Disney acquired Lucasfilm
($4 billion) and will invest significantly in Parks ($500 million
of opex investment). Together, these two items will conspire to
push 2013 EPS downward. As such, our 2013 EPS moves from $3.38 to
$3.29. This suggests that Disney's 2013 EPS apt to grow just 7%
this fiscal year. … We apply a 14x P/E multiple to Disney's fiscal
2014 EPS of $3.83 to arrive at our $54 price target, up from $50
previously. As such, we're upgrading Disney from Neutral to
Walt Disney shares were up 69 cents, or +1.47%, in premarket
trading on Monday.
The Bottom Line
Shares of The Walt Disney Company (
) have a 1.27% dividend yield, based on Friday's closing stock
price of $47.06. The stock has technical support in the $44-$45
price area. If the shares can firm up, we see overhead resistance
around the $50-$51 price levels.
The Walt Disney Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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