Entertainment giant The Walt Disney Company (
) on Monday caught some continued bullish sentiment from analysts
at Nomura Securities.
The firm maintained its "Buy" rating on DIS and lifted its price
target from $48 to $51. That new target suggests a 16% upside to
the stock's Friday closing price of $43.81.
A Nomura analyst commented, "Following the strong run of DIS
shares over the past month (+7% vs. -5% for the S&P since April
10th), we believe DIS assets are well positioned to grow above peer
levels for the foreseeable future, which should drive further
multiple expansion. We identify 5 reasons why we are still bullish.
1. Disney's Return on Invested Capital looks set to accelerate in
FY13 and beyond; 2. Additional shareholder returns likely; 3.
Disney has now largely completed many of the 'one-time' headwinds
that have led to earnings misses over the past year; 4. Theme Park
margins should expand in F2H12 and into FY13; and 5. For Cable
Networks, we expect to see solid high single digit affiliate fee
growth offsetting locked-in long term sports rights increases."
Walt Disney shares were unchanged in premarket trading
The Bottom Line
Shares of Walt Disney Company (
) have a 1.37% dividend yield, based on Friday's closing stock
price of $43.81. The stock has technical support in the $40 price
area. The shares are trading at all-time highs.
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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