Disney shares surged to a 10-year high on Wednesday according to the Los Angeles Times, thanks to favorable ratings by a trio of notable analysts on Wednesday.
Caris & Co. and Morgan Stanley have both increased their earnings estimates for Disney’s fiscal first quarter, which just ended. Goldman Sachs further added to the trio of optimism by adding Disney to its coveted “conviction buy” list on Tuesday.
Goldman Sachs analyst James Mitchell credits consumer spending with helping the entertainment giant to rebound from a period of flat growth. Two new cruise ships added to the Disney Cruise Line – one this year, and one next – are casting a further sunny glow on the company’s prospects. Add to that success in Disney’s cable network group, with both ESPN and Disney Channel turning in favorable performances – and the revenue picture is certainly improving.
Disney shares closed up 97 cents on Wednesday to top out at $39.96, a 2.5% increase.