It is generally agreed that getting a state government mad at your business is a bad idea. Sometimes it works out well, especially when the public is on your side. Just ask Michigan barber Karl Manke. But for Disney (NYSE:DIS), taking on the Florida government has proven a much bigger problem, and now, Disney may be about to see Florida’s latest response.
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The matter, so far, extends to Disney’s special taxing district around its Walt Disney World property in Florida. Said district has been in jeopardy since Disney attempted to intervene in Florida lawmaking, particularly a law known colloquially as the “Don’t Say Gay” law. Now, Florida Governor Ron DeSantis, backed up by a Republican-led legislature, is taking further aim at Disney, suggesting that land near Disney itself could be given over to state parks. Or other amusement parks. Or even, perhaps, a new state prison. It didn’t stop there; DeSantis listed an array of possible changes to hit Disney, including higher taxes and more building and safety inspections.
The trouble comes at a remarkably bad time for Disney. A recent spate of cost-cutting initiatives has already taken place in a bid to save money. Nielsen reports suggest that demand has been somewhat intermittent for one of Disney’s flagship shows, “The Mandalorian.” The third season’s premiere episode, Nielsen noted, had the lowest ratings of any episode of “The Mandalorian” yet. Disney revealed the cast of its “Lilo & Stitch” live-action remake, which also landed Disney some trouble from activists who disliked the actress selected for Lilo’s sister Nani.
Despite this latest batch of troubles, analysts are taking it all in stride, declaring Disney stock a Strong Buy. And by a wide margin, too; 18 Buy ratings against just three Holds. Furthermore, Disney stock offers 27.95% upside potential thanks to an average price target of $128.33.
