💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Parks growth provides Disney optimism for Morgan Stanley

Published 06/21/2017, 11:13 AM
© Reuters.  Parks growth provides Disney optimism for Morgan Stanley
DIS
-
MS
-
  • Disney (DIS -0.3%) is seeing "skies clearing up" after months of dark clouds from ESPN, Morgan Stanley (NYSE:MS) says.
  • Theme parks will now contribute more to operating income than ESPN does, analyst Ben Swinburne and team note, and there's mid-teens growth in operating income ahead. The firm's sticking with an Overweight rating and sees 25% upside in its base case.
  • "Recent share performance (down 8% QTD vs. S&P +3%) and a sub-S&P P/E highlight concerns around ESPN, sustainability of Parks margins, and anxiety over F3Q results," they write.
  • Margins will expand due to a few key drivers, they argue: new theme park attractions including "Pandora: World of Avatar" and lands based on Toy Story and Star Wars; ramping Shanghai profitability; and upside in Parks margins from a heavy expansion of dynamic pricing.
  • Now read: Something Important Changed Last Week


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.