Buy Disney because winning film-toys-parks cycle will outweigh cable weakness, analyst says

A scene from Disney's "Beauty and the Beast."
Source: Walt Disney Pictures.

Disney shares will rally almost 15 percent over the next 12 months as its long-running strategy under CEO Bob Iger of synergy between the film, consumer products and parks business will outweigh weakness in cable networks, according to Guggenheim Securities.

Analyst Michael Morris upgraded Disney shares to buy from neutral.

"We still see strong potential upside to relatively conservative estimates and anticipate valuation multiple expansion as the company enters another robust film, consumer products and parks expansion cycle," wrote Morris. "We believe Disney's content offering is poised to exceed consensus expectations, beginning with the box office opening of Beauty and the Beast on March 17 and including the slate of Star Wars, Pixar, Marvel and Disney films through fiscal 2018."

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