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Pro Analysis

Buy Disney on improving earnings outlook due to ESPN and theme parks, Deutsche Bank says

A statue of Walt Disney and Mickey Mouse stands in front of the Cinderella's castle at Walt Disney World's Magic Kingdom in Lake Buena Vista, Florida
Matt Stroshane | Bloomberg | Getty Images
A statue of Walt Disney and Mickey Mouse stands in front of the Cinderella's castle at Walt Disney World's Magic Kingdom in Lake Buena Vista, Florida

Investors should buy Disney on the prospect of better financial results in the coming years due to cable network renewals and theme park growth, according to Deutsche Bank, which upgraded the shares of the media company.

"The investment case for DIS has, for the better part of 2016, been focused on a return to double-digit EPS growth in 2018. We've generally agreed with this investment case, but we've remained at Hold due to our concerns over weakening performance in the Cable Networks and Consumer Products businesses," analyst Bryan Kraft wrote in a note to clients Tuesday.

"We now have more confidence in the outlook and are moving to Buy, as a result."