Friday, May 30, 2014

Will Maleficent Do In Disney?

Not likely, says Wunderlich’s Matthew Harrigan of Walt Disney’s (DIS) Sleeping Beauty reboot starting Angelina Jolie. He explains:

A likely $55-60mm opening for Maleficent should belie what once were expectations that the supposed $170mm production cost project would emerge as Disney’s next major write-off. This is despite the twists in marketing a film that is in somewhat of a no-man’s land between an action film and a fairy tale fantasy. Although we are still modeling a slight decrease in F2015 film profit even with the advent of The Avengers: Age of Ultron we still have the studio earning near $1.2B. We value the studio at a likely Street high $19.1B. Event films from Disney Animation, Disney live action, Pixar, Marvel and LucasFilm support a top position even with fewer releases than other studios. We are therefore slightly increasing our S&P 500 linked price target on Hold-rated Disney to $83 from $77.

Shares of Walt Disney have dipped 0.1% to $83.96 at 1:29 p.m. today.

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