Article from The Motley Fool - May 24, 2005
Is the common complaint that Motley Fool Stock Advisor recommendation Pixar (Nasdaq: PIXR) takes too much time between film releases finally getting to the computer-animation studio? Yesterday, a Prudential analyst aggressively raised her price target for the stock -- from $40 to $75 -- on the assumption that, come 2009, the studio will be producing more than just one theatrical release a year.
The grumbling started back in December, when Pixar announced that it was delaying its next release -- the final original property due under its deal with Disney (NYSE: DIS) -- from November 2005 to May 2006.Naturally, lost in all this is that we may very well have a glut of computer animation on our hands. That's because we're not just looking at Pixar and DreamWorks combining for the possibility of four computer-rendered features in 2009. Disney is also mentoring young computer-animation studios, and we can't forget News Corp. (NYSE: NWS), after its success with Robots and the Ice Age franchise. The consumer's appetite isn't likely to wane for quality animation anytime soon, but if too many films flood the market, audiences will have to be more selective. That won't be good news for any of the players, no matter how quickly they can churn out the inked celluloid.