Is there more trouble brewing for entertainment kingpin Disney (NYSE:DIS)? Some distressing new signs reveal a proxy war may be firing up. Disney is already swinging its big guns around toward Nelson Peltz, whose activist stance may shake up the company. However, the larger market seems unfazed by this proxy talk, as Disney stock is up slightly in Tuesday afternoon’s trading.
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A proxy war in the brewing isn’t really influencing Wall Street. Current analyst consensus calls Disney stock a Strong Buy with an average price target of $119.15, implying 18.68% upside potential.
Nelson Peltz, who heads Trian Fund Management, is in active pursuit of a board seat. Peltz pulled out the big guns in a CNBC interview recently, calling on investors to look at the total shareholder return produced during current CEO Bob Iger’s tenure. Peltz then called upon investors to then “…tell me the answer.”
Disney itself skillfully parried Peltz’s play, noting that Bob Iger’s total shareholder return was 554%. This outpaced the S&P 500 (SPX) by better than double, as it could only pull in 244% in that time. The key to Disney’s win on that front was that Bob Iger’s tenure as CEO went from 2005 to 2020, which was all pretty much pre-pandemic. Disney then riposted on its parry, saying that Nelson Peltz “…lacked the skills and experience…” needed for a board seat in a letter to shareholders.
