NEW YORK (TheStreet) --Analysts at Deutsche Bank upped their price target on the Walt Disney Co. (DIS) to $120 from $105, and raised its full year 2015 and 2016 adjusted earnings per share estimates by 24 cents and 25 cents, respectively.
Shares of Disney are lower by 0.25% to $108.33 in mid-morning trading on Tuesday.
The firm said it raised its numbers on Disney after the family entertainment and media company's better than expected second quarter earnings results were released last week.
Deutsche Bank maintained its "hold" rating on Disney stock and said it thinks the market recognizes Disney's value.
"Based on our revised forecast, we think Disney can compound ~9% annual returns on the current share price over the forecast period, versus our previous estimate of 6% when we initiated coverage in early March and the stock was 3% lower," Deutsche said in an analyst note.
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, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. 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 4.4%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DISNEY (WALT) CO has improved earnings per share by 13.9% 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 $4.25 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($5.04 versus $4.25).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $1,917.00 million to $2,108.00 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.
- Net operating cash flow has increased to $2,918.00 million or 15.47% when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also modestly surpassed the industry average cash flow growth rate of 15.04%.
- You can view the full analysis from the report here: DIS Ratings Report