http://www.reuters.com/article/marke...0080803?rpc=44

NEW YORK, Aug 3 (Reuters) - Walt Disney Co's (DIS.N: Quote, Profile, Research, Stock Buzz) stock is trading at a discount amid investor worries that economic malaise will hurt theme park attendance, but brighter long-term prospects could put the shares in the high $30 range, Barron's reported on Sunday.

Disney demonstrates that in tough times, companies with the best brands and most disciplined management prove their value, though Wall Street has so far failed to notice, Barron's reported.

The company's cable networks, including the Disney Channel and ESPN, have produced more than half the company's profits, and third fiscal quarter earnings narrowly exceeded analysts' estimates, the business weekly said.

Theme park bookings for the rest of the year have been running flat compared with a year ago, contradicting concern that a weak job market and high gas prices would stop people from visiting.

Still, cautious comments on broadcast advertising pressures at the ABC television network helped deepen the discount in Disney's shares, which are trading at about 13 times projected profits for this fiscal year, which ends in September, Barron's reported, adding that it is a "generational low."

In the company's favor is management's discipline about targeting high returns on capital and its vigilance in using its $5 billion in annual free cash flow to buy back stock and cut debt, Barron's said. (Click here to see Reuters MediaFile blog) (Reporting by Robert MacMillan; editing by Gary Crosse)


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