In a Monday interview with CNBC, Guggenheim Securities media and entertainment analyst Michael Morris noted that Disney’s (NYSE:DIS) CEO, Bob Iger, has been “fixing things” and positioning the firm to expand. Morris emphasized the potential growth that could stem from focusing on the Disney brand. This caused shares to gain slightly in today’s session.
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However, he is less convinced about certain steps being taken in general entertainment, suggesting a need for more progress in this area. Morris underscored the significance of Disney’s planned initiative to launch a combined Disney+ and Hulu app, acknowledging the fierce competition from companies like Netflix (NASDAQ:NFLX), Warner Bros. (NASDAQ:WBD), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL), all heavily investing to captivate viewers consistently.
Morris, who has a Buy rating on Disney, highlighted that the company has excelled in some areas. That includes reorganizing its operations to promote creativity, boosting investments in its Parks and Resort division, and establishing a deal with Charter Communications to offer Disney+ content on select Charter TV packages. He believes that these developments provide a basis for optimism.
Is Disney Stock a Buy or a Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 11 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 10.7% increase in its share price over the past three months, the average Disney price target of $109.31 per share implies 14.60% upside potential.
