UPDATE: Credit Suisse Raises PT on Disney on Multiple Positive Factors

In a report published Monday, Credit Suisse analyst Michael Senno reiterated an Outperform rating on Disney DIS, and raised the price target from $73.00 to $74.00.

In the report, Credit Suisse noted, “With the majority of key affiliate deals and sports rights deals locked up into the next decade, revenue and cost visibility remains high for ESPN. We project an 8% 5-yr CAGR for Cable EBIT with affiliate renewals balancing elevated cost growth in FY14-15, followed by longer term margin expansion as costs normalize. The Star Wars franchise should drive strong profit growth and mitigate risk at the Studio with fewer risky high budget films. Further, our analysis indicates more upside at Consumer Product than consensus est. Overall, we are raising our Lucas EBIT est by 40% and 61% in FY14 and FY15. Based on trends at other Asian parks and the large local market, we conservatively estimate Shanghai can debut w/7m visitors and $748m rev in FY16. Entry into the Chinese market should also create opportunities for other DIS businesses.”

Disney closed on Friday at $63.82.