S&P KEEPS STRONG BUY OPINION ON SHARES OF THE WALT DISNEY COMPANY 7:58am
S&P KEEPS STRONG BUY OPINION ON SHARES OF THE WALT DISNEY COMPANY
We raise our target price $2 to $57, on revised sum-of-the-parts, EV/EBITDA and P/E-to-growth. Sep-Q EPS of $0.68 vs. $0.59 is $0.05 shy of our estimate. We note a strong FY 12 (Sep.) end, fueled by TV networks (ESPN, Disney Channel, ABC Family) and theme parks unit (U.S., Hong Kong, cruise ships). Looking ahead, we see consumer products and perhaps studio further buoyed by Marvel franchises (with pending $4B Lucasfilm deal), with ABC ratings still a swing factor. Sep-Q call affirms view likely enhanced ROIC, after FY 12 peak capex even as new Shanghai park sets to open in '15.