The Walt Disney Company (NYSE :DIS) Recommendation : BUY
Stock Price Target Price Sector Industry
$91.20 (9.15.14) $100.65 Entertainment Media
$88.22 (10.3.14)
Investment Highlights
Summation of investment recommendation
Company and Industry Analysis
The Walt Disney Company is organized in a manner to maximize revenues from a collection of separate but interrelated business units.
Media Networks – this segment includes broadcast and cable television networks, production and distribution companies as well as encompasses radio networks and radio stations. DIS cable networks include ESPN (80% ownership), Disney Channel Worldwide (100% ownership), ABC Family (100% ownership) and A&E Television (50% ownership). Revenues in this segment are derived from fees charged to MVPDs (Multi-Channel Video Programming Distributors)and for commercial time. DIS also sells programming from their networks on DVD and BluRay formats and streaming.
Broadcasting segment for DIS includes Domestic Broadcasting operations via the ABC Television Network. The range of reach for this network is extremely vast, reaching almost 99% of US television households as of the end of fiscal 2013. ABC is responsible for the production of its own content aired for the primetime, daytimes, late night, news and sports segmentation. Revenues are derived in the same manner of the cable network business line. DIS directly owns 8 ABC affiliates throughout the US and located in major markets.
Parks & Resorts – Perhaps what DIS is most famous for internationally is the theme park resorts and destinations that serve millions of visitors per year. Presently, the company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort and California Adventure in California, Aluani, a Disney Resort...