Disney EPS Led by Cable Expansion, 2011 Films

Nomura Securities raised their EPS estimates on Walt Disney (NYSE:DIS) for 2011, citing the growth of profits a their cable networks and a strong slate of films over 2010's offerings.

Nomura said, "Over the next year, Disney is poised to grow EPS by 20% driven by continued profit expansion at cable networks, a stronger FY2011 film slate, improving consumer products licensing and lower Interactive losses...As a result, we are raising our FY11 EPS estimate from $2.43 to $2.47 - $0.03 ahead of the current consensus EPS estimate.

"This growth profile includes modest profit contributions from domestic parks, which we expect will continue to post moderate profit growth despite the lift of a new Disney cruise ship in 2011. A quicker Park’s recovery is gravy to the story...While assets are in place for a multi-year growth story, the biggest risk we see at Disney is the sustainability of its premium at a 10-35% multiple relative to its media conglomerate peers."

Nomura Securities maintains a "Buy" rating on Walt Disney, which closed Monday at $37.13, up $0.47, or 1.28 percent. They have a price target of $43 on them.