Will Disney (DIS) Stock Show Gains as Analysts Stay Bullish?

Disney's (DIS) price target was lifted to $130 from $120 by analysts at Credit Suisse who maintained their 'outperform' rating on the stock.
By U-Jin Lee ,

NEW YORK (TheStreet) -- The Walt Disney Co.'s (DIS) - Get Report  price target was lifted to $130 from $120 by analysts at Credit Suisse who maintained their "outperform" rating on the stock.  

The firm cited a strategic shift on licensing strategy and strong operating trends across the business.

Going forward, analysts believe Star Wars pipeline will drive earnings. Specifically, Star Wars VII-The Force Awakens will likely get positive reviews when it's released on December 18.

Compared to its peers, Disney is performing well with its stock trading at "elevated multiples," analysts noted.

Disney shares are declining 0.38% to $115.98 on Tuesday.

Based in Burbank, CA, Disney operates as an entertainment company worldwide.

Separately, TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DIS's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • DISNEY (WALT) CO has improved earnings per share by 10.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $4.90 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($5.62 versus $4.90).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 7.3% when compared to the same quarter one year prior, going from $1,499.00 million to $1,609.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • You can view the full analysis from the report here: DIS
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