Walt Disney's (NYSE:DIS) Earnings Power Underestimated Says BTIG

Walt Disney (NYSE:DIS) still has a lot of firepower in their earnings says BTIG, and the see them exceeding expectations going forward.

BTIG says, "We continue to believe investors are underestimating Disney’s earnings power from the combination of (1) an upturn in Disney’s content cycle, (2) the leverage from a rebound in theme park visitation (amplified by a notable reduction in discounting), (3) strength in sports advertising well above the broader cable network industry driving ESPN’s earnings growth (further amplified by strong ratings) and (4) at least $3 bn of share repurchases in fiscal 2011, set to exceed $4 bn in 2012.

"We believe Disney’s fiscal (September) 2012 earnings can exceed $3.00/share and are raising our EPS estimate to $3.02 from $2.84 (consensus stands at $2.79), in addition, to raising our fiscal 2011 EPS estimate to $2.64 from $2.55."

BTIG maintains a "Buy" rating on Walt Disney, which closed Thursday at $39.65, down $0.31, or 0.78 percent. They boosted their price target on Disney from $42 to $50.