Disney Keeps A 'Sell' Tag - Multichannel

Disney Keeps A 'Sell' Tag

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Fulcrum Global Partners analyst Richard Greenfield restated a "sell" rating on The Walt Disney Co., saying any improved financial results have already been priced into the stock.

Greenfield elevated his fourth-quarter earnings estimate for Disney to 17 cents from 12 cents per share, but said Disney is trading at a substantial multiple – about 22.5 times estimated 2005 earnings. He also factored in a history of sluggish earnings growth: Disney's EPS is expected to rise from 52 cents in 2003 to 98 cents in 2005, still below its 2001 EPS of $1 per share.

"While we are intrigued by Disney's current earnings momentum, we increasingly believe the drivers of its earnings recovery are not sustainable," Greenfield wrote.

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