Entertainment giant Walt Disney (NYSE:DIS) has settled its long-drawn tax district legal tussle with the Central Florida Tourism Oversight District. The area is home to one of Disney’s most important resort properties, Walt Disney World. The development comes just ahead of Disney’s annual meeting next week.
Feud Fade, Growth Parade
The feud between Disney and Florida began after the company voiced opposition to parental rights in an education bill in the state. The end to this spellbinding tussle unlocks the gates for Disney to weave its magic in expanding its iconic theme park and resort presence in Florida. Under the settlement, Disney agreed to nullify a 30-year development plan it secured last year. Instead, it will now stick to a prior plan that will still allow the company to expand its operations.
Last year, Disney CEO Bob Iger lamented that $17 billion in new development and numerous jobs hung in the balance amid the legal fight. Now, as the dust settles on their legal tango, Disney may unveil new development plans, turning the page on their challenges and stepping into a new chapter of growth and innovation.
Disney’s Ever-After Drama
While Disney’s stormy weather calms, a new tale unfolds. In a classic Disney twist, the settlement precedes the April 3 annual meeting, hinting at changes on the future trajectory of the board. Activist Nelson Peltz is seeking seats on Disney’s Board for former Disney CFO Jay Rasulo and himself. So far, Peltz has secured endorsements from proxy advisory firm Egan-Jones and ISS (Institutional Shareholder Services).
Importantly, the activist push commences amidst fierce competition, streaming setbacks, and a stock story that’s not quite happily ever after. Though Disney shares have seen a 51% surge in six months, the tale over three years reflects a 35% decline.
What Is the Target Price for DIS Stock?
Overall, the Street has a Strong Buy consensus rating on Disney. However, an average DIS price target of $124.04 implies the stock may hovering in fair valuation territory at present.
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