BofA/Merrill Lynch Maintains Bullish Stance on Walt Disney (DIS) Following Q4 Results

BofA/Merrill Lynch analyst Jessica Reif Cohen reiterated a Buy rating and $105 price target on Walt Disney (NYSE: DIS) following Q4 results which were ahead of consensus adj. EPS but a touch below the firm's forecast, reflecting broad-based strength across nearly all divisions with notable upside at Theme Parks and Broadcasting.

Highlights from the quarter, according to the analyst, were: : (1) high single digit affil. growth at Cable Networks, (2) +5% ESPN adv., (3) adv. declines at ABC, (4) syndication gains at ABC Studios (led by Shark Tank), (5) solid retrans, (6) higher write-off activity at ABC, (7) +130bps of Theme Parks margin expansion, (8) +4% attend. and +6% per cap growth in U.S. Parks (aided by MyMagic+), (9) modestly lighter Film (on Guardians of the Galaxy and Maleficient theatrical + ongoing Frozen home ent.), (10) ongoing CP gains (helped by Frozen and Spider Man) and (11) in-line Interactive (reflecting Infinity 2.0’s late Q release, essentially a timing issue)

The firm adjusted FY 2015 EPS from $5.07 to $4.96 and FY 2016 EPS from $6.10 to $5.91.

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $92.00 yesterday.

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