The research analysts at Wall Street firm Nomura went to see “Star Wars” last night and now they’re even more bullish on the performance of the movie, futures installations of the series, and Disney in general.
Last night, we attended a screening of “Star Wars: Episode VII – The Force Awakens”; we have incrementally higher conviction that its broad appeal to all audiences will make the film a box office juggernaut for weeks to come. We are not alone, as a Rotten Tomatoes score of 95% reflects the creative strength of the film across critics. We have increased confidence in our base-case assumptions for the franchise outlined in our April 15, 2015 report, and we are now leaning closer to our optimistic/bull case scenarios that call for the film to quite possibly become the #1 grossing film of all time. It is clear that Lucasfilm fits seamlessly into Disney’s cross-division monetisation engine. Given at least 5 Star Wars films 2015-19, along with a film slate stacked with proven branded IP, we are optimistic Disney can propel sustained cross-segment synergies going forward.
The firm also called “Star Wars” an “excellent movie,” so that seems good.
Nomura now thinks it’s likely that each of the Star Wars films due out through 2019 could generate $3 billion in box office receipts around the world.
Nomura has a “Buy” rating and $121 price target on shares of Disney.
But Nomura isn’t the only firm bullish on what Star Wars will do for Disney, as analysts at Goldman Sachs wrote in a note to clients earlier this week that this first installation of the new “Star Wars” movies could bring in $8 billion in combined box office, merchandise, and other licensing fees.
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