Walt Disney (NYSE:DIS) still has a lot of firepower in their earnings says BTIG, and the see them exceeding expectations going forward.
BTIG says, "We continue to believe investors are underestimating Disney’s earnings power from the combination of (1) an upturn in Disney’s content cycle, (2) the leverage from a rebound in theme park visitation (amplified by a notable reduction in discounting), (3) strength in sports advertising well above the broader cable network industry driving ESPN’s earnings growth (further amplified by strong ratings) and (4) at least $3 bn of share repurchases in fiscal 2011, set to exceed $4 bn in 2012.
"We believe Disney’s fiscal (September) 2012 earnings can exceed $3.00/share and are raising our EPS estimate to $3.02 from $2.84 (consensus stands at $2.79), in addition, to raising our fiscal 2011 EPS estimate to $2.64 from $2.55."
BTIG maintains a "Buy" rating on Walt Disney, which closed Thursday at $39.65, down $0.31, or 0.78 percent. They boosted their price target on Disney from $42 to $50.
Showing posts with label BTIG. Show all posts
Showing posts with label BTIG. Show all posts
Friday, January 7, 2011
Friday, November 19, 2010
Cablevision Systems (NYSE:CVC) Looking to Spin Off Rainbow Media
Cablevision Systems Corp. (NYSE:CVC) has given a nod toward the possibility they may spin off their Rainbow Media Holdings LLC unit.
"Earlier today (Thursday), Cablevision announced that it is exploring a leveraged spin-out of Rainbow Media. The assets under discussion for a spin-out are not perfectly reflected in Cablevision’s financials, as the Rainbow business line includes News 12 operations (operates at a loss), which are staying within Cablevision. In addition, Rainbow will need to pick-up its own corporate expense as it separates from Cablevision...We believe Rainbow could be worth $2.5 bn in 2012 (first full-year post-spin), with includes 4x leverage at the end of 2012, which equates to 12x 2012E free cash flow and 10x 2012E EBITDA," said BTIG.
The spin off would result in a tax-free pro rata distribution to shareholders, i.e. a leveraged spin off. The transaction would be completed by sometime in the middle of 2011.
Cablevision closed Thursday at $30.91, rising by $1.98, or 6.84 percent. BTIG has a price target of $37 on Cablevision, and maintains a "Buy" rating on them.
"Earlier today (Thursday), Cablevision announced that it is exploring a leveraged spin-out of Rainbow Media. The assets under discussion for a spin-out are not perfectly reflected in Cablevision’s financials, as the Rainbow business line includes News 12 operations (operates at a loss), which are staying within Cablevision. In addition, Rainbow will need to pick-up its own corporate expense as it separates from Cablevision...We believe Rainbow could be worth $2.5 bn in 2012 (first full-year post-spin), with includes 4x leverage at the end of 2012, which equates to 12x 2012E free cash flow and 10x 2012E EBITDA," said BTIG.
The spin off would result in a tax-free pro rata distribution to shareholders, i.e. a leveraged spin off. The transaction would be completed by sometime in the middle of 2011.
Cablevision closed Thursday at $30.91, rising by $1.98, or 6.84 percent. BTIG has a price target of $37 on Cablevision, and maintains a "Buy" rating on them.
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