Good news for entertainment giant Disney (NYSE:DIS) hit, which was sufficient to send shares up modestly in Tuesday afternoon’s trading. The development that sent Disney up came thanks to a new analyst report that says the trouble of the proxy fight is now firmly in Disney’s rear-view mirror, and the future can now begin.
Four-star Wells Fargo analyst Steven Cahall, who has a 52% success rate, noted that since Disney’s board is now decided, it can start focusing on execution once more. With Disney’s sports business stabilizing and direct-to-consumer margins looking to improve, it’s a set of good signs for the House of Mouse. Throw in the likely gains from streaming—adding Hulu content to Disney+ by itself could add upward of $400 million in operating income, and that’s another benefit to Disney and its focus on execution.
Meanwhile, at the Theme Parks…
Execution may be the name of the game right now, but that’s proving to be something of a mixed bag. For one, Disney offered up a new policy on the treatment of the disabled in its parks. Where Disney previously offered accommodation for the disabled who couldn’t stand in line for rides, the new policy is limited to those who have a “developmental disability like autism or similar.”
Those who have, say, leg injuries that prevent standing for extended periods are no longer part. Despite this, Disney has several plans to somehow make movies out of its rides, including films for “Space Mountain” and “Big Thunder Mountain Railroad.”
Is Disney a Good Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 24 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 14.28% rally in its share price over the past year, the average DIS price target of $124.44 per share implies 9.45% upside potential.
