Merrill Lynch raised earnings estimates and the target price for Pixar (nasdaq: PIXR).
Merrill Lynch cited a move to a 2005 discounted cash flow analysis and Pixar's full participation in film economics after 2005--currently The Walt Disney Co. (nyse: DIS) receives about 50% of film profit or about 60% with distribution fees.
The research firm also increased the worldwide gross box office projection for The Incredibles, to be released theatrically Nov. 5, to $600 million from $525 million.
Merrill left the third-quarter estimate unchanged for earnings of 21 cents per share on revenue of $28 million, but raised the fourth-quarter estimate to 67 cents per share from 56 cents.
The firm raised the 2004 estimate to earnings of $1.97 per share on revenue of $232 million, from earnings of $1.86 per share on revenue of $225 million.
Merrill also raised the 2005 estimate to earnings of $1.97 per share on operating income of $180 million and revenue of $252 million, up from estimated earnings of $1.56 per share on operating earnings of $140 million and revenue of $202 million.
The firm also raised the 12-month target price to $95 from $78.
Merrill Lynch cited a move to a 2005 discounted cash flow analysis and Pixar's full participation in film economics after 2005--currently The Walt Disney Co. (nyse: DIS) receives about 50% of film profit or about 60% with distribution fees.
The research firm also increased the worldwide gross box office projection for The Incredibles, to be released theatrically Nov. 5, to $600 million from $525 million.
Merrill left the third-quarter estimate unchanged for earnings of 21 cents per share on revenue of $28 million, but raised the fourth-quarter estimate to 67 cents per share from 56 cents.
The firm raised the 2004 estimate to earnings of $1.97 per share on revenue of $232 million, from earnings of $1.86 per share on revenue of $225 million.
Merrill also raised the 2005 estimate to earnings of $1.97 per share on operating income of $180 million and revenue of $252 million, up from estimated earnings of $1.56 per share on operating earnings of $140 million and revenue of $202 million.
The firm also raised the 12-month target price to $95 from $78.