With its board battle finally concluded, Disney (NYSE:DIS) CEO Bob Iger took the opportunity for a victory lap, declaring Nelson Peltz’s attempt to land seats on the board a “distraction” and explaining how the media giant could once more be a growth company. Investors were skeptical, meanwhile, and sent shares down fractionally in Thursday afternoon’s trading.
Iger noted that Disney can be a growth company again by focusing on “user engagement” so that consumers “…spend…time on the platform.” This involves “getting to know the customer better” through recommendation engines and other technologies.
Iger specifically called out the acquisition of 20th Century Fox, which opens up a range of new media properties that can be put to work, from “The Simpsons” to “Family Guy” and beyond. In fact, reports suggest that one of those properties, “Avatar,” may actually be on tap for much wider use.
Park Expansion Lined Up
While a trip to Disneyland is about as affordable as a trip to the moon for many these days, there may be one more reason to at least try for it. A new expansion effort is planned that will feature the “Avatar” property extensively. Reports suggest that this will be the largest expansion effort the park has seen yet, as part of a $60 billion expansion plan that will kick in over the next 10 years.
With Universal planning to open a third theme park not far from Disney’s own gates, it’s clear that Disney will need to bring some serious attractions into play or risk losing further ground to its close competitor. The expansion will require approval from Anaheim’s city government, though, thanks mainly to zoning issues.
What Is the Future Price of Disney Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 22 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.51% rally in its share price over the past year, the average DIS price target of $126.92 per share implies 7.47% upside potential.
