After calling off a proxy contest with the entertainment giant Disney (NYSE:DIS), activist investor Nelson Peltz has renewed efforts toward securing board seats at the company, as reported by the Wall Street Journal. Per the report, Peltz’s Trian Fund Management is among Disney’s largest shareholders, owning a stake worth over $2.5 billion.
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Investors should note that Trian Fund Management increased its holdings in Walt Disney in Q2, per the latest 13F filing.
Trian Fund Management is seeking multiple board seats, including one for Peltz. Moreover, Trian will proceed to nominate its directors, subject to a vote at Disney’s annual meeting, in case the company’s management declines the request of the asset management firm. The period for nominations spans from December 5 to January 4.
The move is a surprise, especially given Disney’s recent efforts to enhance its financial performance, which aligns with Peltz’s recommendations. The company made organizational changes, including reorganizing the business into three core divisions. Further, it eliminated jobs. The company expects $5.5 billion in cost savings through its restructuring measures. In the future, whether Disney will accept Peltz’s request needs to be seen.
Meanwhile, let’s look at what analysts recommend for DIS stock.
Is Disney Stock Expected to Go Up?
Disney stock has underperformed the broader markets so far in 2023. Furthermore, its shares are down about 18% over the past year. Nonetheless, the company is focusing on driving sustainable profitability in its DTC (direct-to-consumer) business and has managed to cut losses, which is encouraging.
While Disney is focusing on reaccelerating growth, increased competition in the DTC business and near-term macro uncertainty keep analysts cautiously optimistic about its prospects.
With 17 Buy, five Hold, and two Sell recommendations, DIS stock has a Moderate Buy consensus rating on TipRanks. Analysts’ average price target of $106.37 implies 28.25% upside potential from current levels.
