Goldman Sachs removed Walt Disney (DIS ) from its recommended list and now rates the shares market outperform.
Analyst Richard Simon says he is cutting his $0.95 fiscal 2002 (Sep.) EPS estimate to $0.84 based on anticipated realization of a poor upfront ad sales season. He notes his new estimate is up 2% from his current $0.82 fiscal 2001 EPS estimate. Simon says that as a result, he removed Disney form the recommended list and now rates the stock as market outperform. He believes Disney's relatively low multiple of 10.5x relative to fiscal 2002 EBITDA is subordinate to its unexciting earnings momentum.