Gains From Disney Operations May Aid Stock

NEW YORK – The Walt Disney Co.’s varied entertainment operations are expected to post profit gains in 2006, which should help the company’s shares overcome negative market sentiment toward media stocks.

Several years of under performance and an uncertain macroeconomic outlook have driven “excessive bearishness” toward the media group, Merrill Lynch analyst Jessica Reif Cohen said in a research note.

Shares of Burbank, Calif.-based Disney reached a 52-week high of $29.99 on Feb. 8 but fell to a low of $22.89 on Oct. 20. On Wednesday, the stock slipped 41 cents, or 1.7 percent, to close at $23.99 on the New York Stock Exchange.

Traditional media stocks continue to trade at low valuations but earnings growth should drive stock gains, Reif Cohen said. As for Disney, earnings and share price momentum from the company’s multi-year recovery should continue across its operating segments, said Reif Cohen, who has a $31 a share price target on the stock and called it “the most attractively valued stock in the group.”

Disney’s movie slate looks pretty good, featuring a sequel to the hit “Pirates of the Caribbean” and the last scheduled movie with Pixar, “Cars,” said AIM Funds portfolio manager Mark Greenberg.

Also, “Chronicles of Narnia” has raked in over $200 million of domestic box-office since debuting about three weeks ago, which bodes well for the film’s DVD release.

The biggest question mark on the film studio side is whether Disney can sign a new distribution agreement with Pixar

Book your next Disney trip through DAPS MAGIC’s travel partner Mouseways Travel! Let Mouseways focus on the details so you can focus on enjoying the magic! Book your next Disney trip at
MOUSEWAYS.COM/DAPSMAGIC today! 

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest

Share your thoughts and comment!

Mr. DAPs

Mr. DAPs

Hi, I'm Mr. DAPs, the Founder, and Editor in Chief of DAPS MAGIC! I can be regularly found at Disneyland with my hat and bow tie taking pictures and simply enjoying the Happiest Place on Earth. I'm also the weekly host of GEEKS CORNER and your Disney reporter for DISNEY REPORTER on DAPS MAGIC's YouTube channel. I am also now honored to announced that I'm a Brand Ambassador with Her Universe! Find me on Twitter and Instagram. as I'd love to connect with you. Make sure and say hi!

SUBSCRIBE TO DAPS MAGIC TODAY!

DAPS MAGIC YOUTUBE

MOUSEWAYS TRAVEL

GEEKS CORNER PODCAST

POPULAR POSTS

Top Posts & Pages
New Walt Disney World 50th Anniversary Starbucks ‘Been There’ Mugs Arrive at Disney’s Animal Kingdom and Disney’s Hollywood Studios
9 Spooky Disney Animated Shorts Perfect for Halloween Time
The History of the Candlelight Ceremony at Disneyland
Pictorial: Marvel Studios' Eternals Hollywood Premiere
Pictorial: Ron's Gone Wrong U.S. Premiere
Disneyland Paris to Kick off Christmas Season with New Parade!
Disney Legend Ruthie Tompson Dies at 111
Knott's Scary Farm is Back in 2021 with New Mazes, Scare Zones, and Shows!