Walt Disney Company (The) : An interesting entry point
By Alexis Peyrard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$79.78 | $85 | $78.5 | +6.54% |
The company is supported by strong fundamentals and qualitative Surperformance ratings. The group shows an interesting profitability profile with net margin at 13.6% for 2013, up 50% since 2009 while revenues grew of 25% on the same period. Thomson-Reuters analysts estimate its EPS will rise of 35% by 2015 reaching USD 4.57 from 3.38 last year. Moreover, the stock is supported by a strong buying consensus.
On a technical viewpoint, the stock is in a consolidation phase since early march, but the upward momentum could quickly bring back the stock near its USD 83.35 resistance.
On March 24th, the company entered a deal to buy Maker Studios, one of Youtube’s largest networks for UDS 500 million. This acquisition makes Disney a major online video distributor and will help the group to draw more teenagers into the Disney productions by increasing its online presence.
Active investors could take a bullish position at the current price aiming firstly at the USD 83.35 resistance and then at USD 85 corresponding to the trend line. A stop loss will be placed at USD 78.5 indicating a more significant consolidation.