Disney price target raised to $135 from $115 at BofA

BofA analyst Jessica Reif Ehrlich raised the firm’s price target on Disney to $135 from $115 and keeps a Buy rating on the shares after fiscal Q1 results exceeded expectations and Bob Iger outlined strategic priorities that include improving efficiency via $5.5B in planned cost cuts, giving control back to creative executives in a new organizational structure, reinstating a dividend by the end of the calendar year, putting a greater focus on core brands and reverting back to more traditional forms of content monetization, including linear. Fiscal Q2 will see restructuring charges, which will partially include the 7,000 job reductions, but it is unclear if there will also be content write-downs, noted the firm, which is "encouraged" by Iger’s strategic vision, but adds "this is clearly the first phase in Disney’s transformation."