Two brokerage firms disagreed on Wednesday as to just how magical Disney's ( DIS) stock currently is. While Fulcrum Global Partners views the stock as expensive and lacking in growth prospects, Credit Suisse First Boston sees upside profit potential.

Fulcrum analyst Richard Greenfield initiated coverage of Disney with a sell rating and $16 price target, saying the shares are overvalued after the fast success of the U.S-led war in Iraq. Going forward, the analyst said he believes margins will decline to 12% from 14.3%, and that full-year earnings will only grow 9%, compared with expectations of 25% to 35%.

Additionally, because of economic, travel and tourism uncertainties, Greenfield said the company could miss even his low estimates. "We believe the key direction of risk to our and consensus 2003/2004 estimates is to the downside," he said.

Though Disney has "unique exposure" in consumer products and theme parks businesses, in Greenfield's view, the company has a weak and "less exciting" mix of businesses with slower growth and weaker returns.

Meanwhile, Credit Suisse analyst William Drewry couldn't have disagreed more, saying Disney will have "the best-performing stock in the media/entertainment group over the next 12 months." He raised his target price to $27 from $23, based on his estimate of the company's 2003 earnings before interest, taxes, depreciation and amortization of $3.8 billion. Drewry has hope for several of Disney's forays, including its theme parks and cable channels.

Drewry said first-quarter attendance at Disney theme parks was a pleasant result. "CEO Eisner's comments were encouraging, and we believe the second-quarter's re-downturn could have been the low water mark." In the next two quarters, Drewry sees potential profit growth.

Also, Drewry indicated that the performance at ABC Family has improved. "The Disney networks ( ESPN, ABC Family, etc.) should experience higher single-digit pricing increases, and we believe could produce an upside surprise." But, he said, this could represent more overall market growth than just a Disney-specific benefit.

The CSFB analyst also said a potential new co-production deal between Disney and Pixar ( PIXR) could surface by year-end. Still, he believes the deal could be more heavily favored for Pixar. Disney's and Pixar's last film was Finding Nemo.

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