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Thu, May 24, 2001 - Page 24 News List

WWII flick might not help Disney

BLOCKBUSTER?The anticipated summer hit may score at the box office, but analysts say that doesn't necessarily justify buying Walt Disney shares

BLOOMBERG , NEW YORK

The majority of analysts recommend Disney shares with 22 out of the 26 analysts rating the stock a "buy," according to Bloomberg data. Four analysts have a "hold" on the stock.

Some investors share Dixon's view that Pearl Harbor. isn't likely to single-handedly lift the company's profit.

"There are other areas of weakness in advertising and theme parks," said John Waterman, chief investment officer at Rittenhouse Financial Services Inc, which owns 9.9 million shares of Disney. "Even if Pearl Harbor does well, you won't see Disney earnings take off.

"We are holding Disney because we believe the economy will pick up later this year and ultimately help" the theme park and advertising businesses, he said.

"I am comfortable with the long-term outlook for the company," he said. "I don't feel we need to be quite as aggressive given concerns on advertising market and the economy at large."

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