Will Jedi Mind Tricks work for Disney next Week?
Walt Disney Company (DIS) reports next week and if only the LucasFilm aquisition came with real Jedi Mind trick powers. Will the company be able to impress the Street or will the stormtroppers not be fooled and give DIS shares a death sentence?
What are Jedi Mind tricks? If you seriously don't know, recall this clip from the 1977 Star Wars movie that started it all (of course Lucas added some crap to it since then)
Mastery still believes that Disney is one of the coveted stocks to buy for 2015, we are surprised more Talking-Heads and Internets haven't said the same thing. We are willing to buy Disney on the upcoming Star Wars 7 film alone (recall Why Buy Disney Shares? , Disney rallies on Star Wars Trailer,
Forget what we think, here's what the Street wants on Tuesday:
Analysts expect Walt Disney to post earnings of $1.06 per share and revenue of $12.85 billion for the quarter.
Analysts at Stifel Nicolaus reiterated a “positive” rating on shares of Walt Disney in a research note on Friday, January 16th. Analysts at Topeka Capital Markets downgraded shares of Walt Disney from a “buy” rating to a “hold” rating and set a $97.00 price target on the stock in a research note on Wednesday, December 10th.
Analysts at Barclays lowered their price target on shares of Walt Disney from $85.00 to $83.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 18th. Finally, analysts at Sarasin & Partners initiated coverage on shares of Walt Disney in a research note on Wednesday, November 12th. They set a “buy” rating on the stock.
Seven analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $89.67. (intercooler.com)
We stand by our $110 price target. The measels at California Disneyland won't kill the stock. Wall Street only cares about the guidance, how much more money will they make? The answer. Star Wars. Use the Force.
Credit Suisse Group analyst Michael Senno believes that Disney will make “around $733 million in profits” from Star Wars: Episode 7. According to Senno, that $733 million in profit will be a combination of “consumer products and other revenue” along with roughly “$1.2 billion in global theatrical receipts.”
Keep this in mind, Star Wars Ep. 1 with Jar Jar Binks managed to rake in just under $1 billion global ticket sales (unadjusted for inflation) back in 1999. The new film with Luke, Han Solo, and Leia will have no problem hitting $1 billion, we think it could go as high as $1.7 billion. The buzz on the Street is that Disney is going to disappoint on the call. I think that is great and if they do I'm loading up the truck. Year-to-date Disney is down 3.4%. Are you people serious? This is the company that has the media we actually want to watch and consume. Disney has some major titles coming in the next two years. Those titles being Avengers Age of Ultron, Star Wars Ep. 7, Antman, Pixar's Finding Dory, and Captain America 3. Let's not forget that eventually we will get a Frozen 2. The movie Frozen came out of no where and is the highest grossing animated film of all time. You fellas like sports? Disney owns ESPN and they get us to watch the commericals.
Bottom line: Disney won't need the Jedi Mind Tricks on its Feb 3rd earnings call. Have faith in the Marvel-Star Wars-Mouse, we do.
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