RESEARCH ALERT - Morgan Stanley ups Disney
January 4, 2000 09:13 AM
NEW YORK, Jan 4 (Reuters) - Morgan Stanley said it raised its investment rating on Walt Disney Co. to outperform from neutral, saying the strategic changes that the company is making should produce a turnaround in its operating income growth rate.
-- Analyst Richard Bilotti said, "The rating strength at ABC, the box office success of 'Toy Story 2, and 2 to 3 percent attendance at Disney World are all positive factors."
-- Said management will use earnings potential of ESPN, a revised home video strategy, cost reductions in other businesses and tighter capital reinvestment standards to craft an even stronger turnaround in fiscal 2001.
-- Shares were trading at 30-7/8, up one, in early trading on the New York Stock Exchange.
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