Disney/Marvel to Shred Big Time in 2010 (DIS, MVL)

Walt Disney Company (NYSE:DIS) keeps rolling in the dough, and thanks to "Alice in Wonderland" raking in $116.3 million this weekend, its on like Donkey Kong. 

Disney shares have more room to grow, with an incredible pipeline and Marvel Entertainment's (NYSE:MVL) lineup including Iron Man 2, Thor, Captain America and best yet The Avengers (script ready) -- get ready to shred.

GO DIS SHARES
Walt Disney Co.: Deutsche Bank analyst Doug Mitchelson reiterated a buy rating on shares of Walt Disney Co. (DIS) on Mar. 7.

The studio's "Alice in Wonderland," the Lewis Carroll tale re-imagined in 3-D by director Tim Burton, made $116.3 million in U.S. and Canadian ticket sales for over the Mar. 5-7 weekend, the sixth-biggest opening ever. The movie also set other records: the biggest debut for March and for a 3-D film, the largest opening weekend for the year, and the best-ever Imax opening, Hollywood.com Box-Office said.

In a Mar. 7 note, Mitchelson said the film grossed $210 million worldwide, leading him to a "very preliminary" ultimate profit estimate of $200 million. The analyst noted that it typically takes two to three weekends to make an accurate forecast.

"In our view, this kicks off a content recovery for Disney, which has been in an 18-month dry spell with duds like 'Bedtime Stories', 'G-Force' and 'A Christmas Carol', and overcoming tough comps against 'High School Musical'," the analyst wrote. "Looking forward, we believe Disney's line-up has as much assurance of success as the movie business allows, with films like 'Toy Story 3' (June 18) this summer, 'Cars 2' (July) and 'Pirates 4' (July) [in 2011], and two original Pixar movies in 2012, the first time 2 Pixar movies will be released in a single year".

He also noted that new studio management has "aggressively addressed costs ... including essentially shutting down Miramax". Mitchelson said he believes Disney's stock has "significant upside".

The analyst has a $39 price target on Disney shares.

SOURCE: http://www.businessweek.com/investor/content/mar2010/pi2010038_533965.htm?campaign_id=yhoo