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Okay, it was down a bit today after reaching a 10-year high of $40. But consider that today's closing price of $39.65 compares with $15.83 in March, 2009. Is there more upside potential? Analyst Richard Greenfield says yes, raising his target price on the company to $50 (seems a little high). From Dorothy Pomerantz at Forbes:
Although "Tron" isn't turning out to be the runaway blockbuster some expected (it has earned $245 million to date on an estimated budget of $170 million), Greenfield sees strength in the studio's 2011 slate. With "Cars 2" and a fourth Pirates of the Caribbean movie both slated for this summer, Disney should have a banner year at the box office. The studio will also benefit from two big Marvel pictures: "Thor" and "Captain America." (Those films are being distributed by Paramount but Disney now owns Marvel, the studio that produced the movies.) Other good studio news: Tangled is performing well with $316 million at the box office so far and "Toy Story 3" DVDs are flying off the shelves.
Greenfield says investors are also underestimating the theme parks. Attendance is picking up.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.