CS First Boston Upgrades Pixar
CS First Boston upgraded its investment opinion on shares of Pixar (PIXR ) to outperform from neutral on Oct. 7.
Analyst William Drewry says he upgraded the shares for several reasons. He says at the Oct. 6 close, the stock had pulled back a sizable $10 from recent highs, while forward EPS remained the same, representing a "great entry point". Drewry says moving closer to Pixar's next film release, the stock typically performs well in the six-month period leading up to the release. He believes its production capacity has expanded, and the company can move beyond one film per year to closer to two. He thinks Pixar's next film, Cars, could be very successful, and might appeal to a very broad audience. Drewry sees $1.02 2006 EPS for Pixar, rising to $2.70 in 2007, and has a $55 price target.