- Walt Disney (NYSE:DIS) is still the top pick in media from J.P. Morgan, says analyst Alexia Quadrani, who's raising quarterly estimates on the strength of advertising in its Media Networks unit.
- The firm has an Overweight rating on the stock and a price target of $130; 26% upside from its current price of $103.45.
- Quadrani has raised J.P. Morgan's EPS estimate for the quarter to $1.16, from $1.15; that against a consensus of $1.13. That's based on higher ad performance in both cable and broadcast networks, with “increased demand, sell-through rates, and pricing gains in the Upfronts at ESPN and industry-leading price gains in the Upfronts at ABC with scatter pricing pacing modestly above upfront levels when the company reported earnings in early August."
- The firm raised its EPS estimates for fiscal 2016 to $5.62 from $5.55, chiefly due to an increase in its buyback assumption (to $3B in Q4) and two well-discussed catalysts: December's theatrical release of Star Wars: The Force Awakens and a spring opening for Shanghai Disneyland.