Disney Upgraded to a “Buy” at Bank of America/Merrill Lynch (DIS)

in Gold Gold Investing Gold Investment by admin — March 4, 2010 7:21 am | no comments

Media giant The Walt Disney Company ( DIS ) saw its rating and price target boosted on Thursday by analysts at Bank of America/Merrill Lynch. The analyst lifted its rating on DIS to “Buy” from “Neutral,” citing its valuation at current levels, as well as a better risk/reward profile. It also raised its price target on the stock, which had closed at $31.64 on Wednesday, to $42 from $33. Bank of America/Merrill Lynch also noted that Disney is “one of the most compelling equities in Media and Entertainment” as we head toward fiscal 2011. Disney shares rose 40 cents, or +1.3%, in premarket trading Thursday. The Bottom Line We recently removed shares of DIS back on Oct.30, when the stock was trading at $28.14. The company has a dividend yield of 1.11%, based on Tuesday’s closing stock price of $31.64. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels. We would remain on the sidelines for now. The Walt Disney Company ( DIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .