Disney stock is up a little over 2% today, currently sitting at $44.12 with about 10 minutes left in the trading day. This marks a new all-time high for the company, which has been steadily increasing profits over the past several quarters. Disney makes the majority of its profit from ESPN and its media arm, rather than its theme parks division. Nonetheless, an increase in stock price, cash flow, and income may lead to a higher dividend or additional capital expenditures in the theme parks. Disney is currently investing a great deal into its theme parks division. We have Cars Land coming to Disney’s California Adventure, the Fantasyland Expansion at the Magic Kingdom, the “NextGen project” throughout Disney Parks, and the Disney Fantasy joining the Disney Dream in April 2012.
S&P currently rates Walt Disney stock a “Buy” with a $50 12-month price target. “The Street” concurs, with a price target of $54. Barclays Capital and Wunderlich both have price targets in the $50 range as well. The one major holdout is UBS, which maintains a “Neutral” rating on the stock with a $42 price target.