Barclays Maintains an 'Overweight' on Walt Disney (DIS); Modest Mouse

Barclays maintains an 'Overweight' on Walt Disney (NYSE: DIS) price target lowered to $44.

Barclays analyst says, "While Disney's quarter appeared to beat headline EPS estimates by $0.05, the "beat" was due to ESPN revenue recognition (~$0.06/share) that management had said would be deferred, meaning Disney's quarter was a modest miss. While Parks room rate growth was up strongly in the quarter, given an uncertain consumer, we are taking a more conservative stance going forward. We are also modestly lowering our ESPN ad revenue assumptions. Our new FY12 EPS is now $2.85; we are lowering our target to $44. Despite these revisions, given an aggressive buyback plan and unduly compressed P/E multiple, we do not believe it makes sense to rotate out of DIS at this time."

For more ratings news on Walt Disney click here and for the rating history of Walt Disney click here.

Shares of Walt Disney closed at $34.70 yesterday.

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