Walt Disney’s (NYSE:DIS) new CEO, Bob Iger, is clearly focused on setting things straight under his leadership. Soon after announcing a 4-days-in-office rule applicable from March, Iger lifted the charges off several services offered at the Disney theme parks. This was an attempt to reverse some of the revenue-focused theme park policies imposed under the brief and unsuccessful leadership of Bob Chapek.
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Under Iger’s leadership, certain theme park offerings, like digital downloads of attraction photos at Disneyland, were complementary to guests with tickets. However, under Chapek’s aggressive revenue-boosting strategy, guests would be required to pay for them. Such price hikes and charges were garnering a lot of disrepute for the company. Chapek, a former parks executive, was ousted in November last year and replaced by the company’s former CEO of 15 years, Iger.
The move will also open the doors to several flexibilities, like increasing the number of days for discounts on tickets. Additionally, Disney World and Genie+ customers will also get to enjoy free digital downloads of attraction photos. Moreover, most parks will be open to annual pass holders without reservation after 2 p.m.
While this does not address all the concerns that Disney’s theme park patrons are facing, these initial steps will add value to guests’ experiences, according to management.
Is DIS a Sell or Buy?
Wall Street analysts gave a Strong Buy consensus rating to DIS stock, based on 17 Buys and four Holds. The average price target of $119 indicates a 24.5% upside over the next year.
