First published: 0:13 EST
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In a surprising move, Walt Disney (NYSE:DIS) announced that its former CEO, Robert A. Iger, is back at the helm, succeeding Bob Chapek. Iger served as Disney’s CEO for 15 years and has agreed to lead the company for another two years.
Speaking about the development, Disney’s chairman stated that the board members see Iger as “uniquely situated” to lead the company as it “embarks on an increasingly complex period of industry transformation.”
This comes after Disney’s losses in the DTC (direct-to-consumer) business more than doubled in Q4. Further, the losses widened significantly for the full year. Several analysts, including UBS’ John Hodulik and Evercore ISI’s Vijay Jayant, lowered their price target on DIS stock following the losses in the DTC business and pressure on park margins.
Is Disney a Buy, Sell, or Hold?
Most analysts maintain a bullish outlook on DIS stock as losses in the DTC business peaked and are expected to decline. Moreover, the launch of an ad-supported subscription plan and increased prices are expected to cushion margins. Disney stock has a Strong Buy consensus rating on TipRanks based on 16 Buy and three Hold recommendations.
Analysts’ average price target of $126.06 implies 37.32% upside potential. Further, DIS has an Outperform Smart Score of nine on 10.
