Disney was named Standard and Poor’s Focus Stock of the Week. Disney carries a 5-Star “Strong Buy” rating and a price target of $50. Walt Disney Company stock is currently hovering around the $40 range, down from a 52-week high of $44.34. Disney will announce third quarter earnings on August 9th. The following conference call usually includes a few interesting snippets of Disney World news, including attendance figures, hotel occupancy, and overall trends in the industry.
S&P’s conclusion follows:
“CONCLUSION We believe Disney is well positioned to benefit from a continued cyclical rebound – despite potential macroeconomic speed-bumps – with broad-based recovery across the television, theme parks, merchandise licensing and filmed entertainment businesses. We think the company has a collection of some of the world’s strongest entertainment brands, a business strategy hinged on multi-platform franchise exploitation, and a strong management team.
While organic growth reinvestments likely remain a primary focus, we see potentially significant upside from the Marvel acquisition. The company appears to us to be in sound financial condition, with a strong investment-grade credit rating, and likely acceleration in free cash flow expected to sustain increased capital allocation for share buybacks, dividends and selective acquisitions. Based on risk/reward considerations, we believe the shares offer compelling value at current levels. Our recommendation is Strong Buy.”
I think I have to disclose that I am not a certified analyst and any opinions implied or stated should probably be ignored. After all, this is the same guy that bought HP stock around $46.