Walt Disney’s Target Boosted at Nomura (DIS)


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Entertainment giant The Walt Disney Company ( DIS ) 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 Monday.

The Bottom Line
Shares of Walt Disney Company ( DIS ) 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 ( DIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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