Disney Stock Upgraded To "Buy" In Part Due To Strength At ESPN

By John Ourand, Staff Writer

Pali Capital investment analyst Rich Greenfield upgraded Disney’s stock rating to “buy” from “neutral” based in part on strength at ESPN. “Given the decline in collective broadcast network ratings, the impact of a WGA strike on 'fresh' broadcast programming, and growing DVR fears, advertising on sports programming is increasingly compelling to advertisers,” Greenfield wrote. The analyst is optimistic about Disney’s cable networks as a whole. Greenfield: “While in past recessions, Disney has largely been viewed as a theme park company, yet the Theme Park division represented only 22% of Disney’s Operating Income in FY2007; whereas Cable Networks represented 45%.” Pali is raising Disney’s Earnings Per Share estimate this year to $2.15 from $2.13; and next year to $2.43.