Analysts weighed in on entertainment giant Walt Disney Co (NYSE:DIS) and business development company Prospect Capital Corporation (NASDAQ:PSEC), following earnings reports from both. While one analyst remains bullish on Disney despite ESPN slow-down, the other remains neutral on PSEC, noting both positive and negative figures on the report.
Walt Disney Co
Analyst Barton Crockett of FBR weighed in on Disney following its fiscal first-quarter earnings yesterday after market close. The analyst pointed to higher than expected revenues and EPS of $15.2 billion and $1.50, respectively, due to the success of Star Wars: The Force Awakens franchise. Despite this success, Crocket noted investor focus on “slow affiliate fee growth at ESPN” which drove the stock price down post-earnings. These cable affiliate fees came in at only 1.5% growth, “well below” the analyst’s 5% growth estimate. However, the analyst expresses positive sentiment on “signs that the modest sub-loss pressures at ESPN are reversing, thanks, at least in part, to uptake of DISH’s Sling” Going forward, Crocket believes “online potential for Disney networks is a great offset to the risk to the pay TV bundle.”
The analyst reiterated his Outperform rating on the company, decreasing his price target to $101 from $110. Barton Crockett has a 43% success rate recommending stocks with an average return of 1.7% per recommendation.
According to TipRanks’ statistics, out of the 18 analysts who have rated the company in the past 3 months, 7 gave a Buy rating, 2 gave a Sell rating, and 9 remain on the sidelines. The average 12-month price target for the stock is $105.27, marking an 18% upside from current levels.
Prospect Capital Corporation
Analyst David Chiaverini of Cantor weighed in today on PSEC after the company posted its fiscal second-quarter earnings report yesterday after market close. Most notably, net operating income for the quarter of $0.28 per share beat both the analyst’s and consensus estimates by 3 cents due to dividend income of $13.5 million, highly surpassing his $2.3 million estimate.
The analyst pointed to a the company’s 5.1% decrease in book value for the quarter, though notes an increase in nonperforming loan ratios as well as the purchase of $50 million worth of stock in December, which the analyst believes “helps further align management’s interest with shareholders.” He also addresses spin-off rumors, stating that the company “has taken this initiative off the table, at least for the foreseeable future”, and depends on “market-conditions.”
As a result of positives and negatives from the earnings report, the analyst reiterated his Hold rating and $6.50 price target. The analyst has a 37% success rate recommending stocks with an average return of 2.6% per recommendation, according to TipRanks.
According to TipRanks’ statistics, out of the 5 analysts who have rated the company, 3 gave a Buy rating, one is recommended to Hold, while one suggested to sell the stock. The average 12-month price target for the stock is $9.17, marking a 58% upside from current levels.