Analyst: Pixar Doesn't Need Disney

Analyst: Pixar Doesn't Need Disney

Shares in Pixar animation shot up nearly 5 percent on Monday after Prudential Securities analyst Katherine Styponias upgraded her forecast for the company, saying in a note to clients that she is assuming Pixar will increase its production schedule to two films every other year starting in 2009. She also raised her price target on the company's shares to $75. Pixar shares closed Monday at $52.95. Styponias said that Pixar's growth did not depend on renewing a deal with Disney; however, she noted that if Pixar Chairman Steve Jobs and Disney CEO Robert Iger do in fact renew their relationship, Pixar would probable produce more sequels as its second films than it would if it signed a distribution pact with another distributor. Although Pixar has said nothing about upping production, Styponias observed that the company recently bought new land at its facilities and has eight movie directors on staff. She said that the company will have to keep that talent "engaged and productive" or see them plucked off by other animation studios.

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