Today should have been a good day for media giant Disney (DIS), and for the most part, it was. It reached a new agreement with workers that would prevent a strike from hitting the Magic Kingdom and announced some new content deals. That was enough for shareholders to send shares up fractionally in Thursday afternoon’s trading.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
There was significant trouble potentially on tap for Disney the other day, with around 14,000 employees prepared to strike for the first time in decades. But Disney managed to defuse the situation with a new agreement, or at least, a tentative one that needs to go up for approval.
This impacts the alliance of multiple unions at the Disney parks, which handle everything from store clerking to custodians and beyond. The terms of the new agreement haven’t been released yet, but we’ll likely hear more about this after Monday when the agreement goes up for ratification by the various unions involved.
Content Deals Explode
Meanwhile, Disney has been working to augment its content lineup, and it’s even working with Warner Bros. Discovery (WBD) to make that happen. In fact, the team has now rolled out a new streaming bundle featuring Disney+, Hulu, and Max, all at a 38% discount over buying each one separately. It’s $16.99 a month with ads or $29.99 a month without.
Disney is also augmenting its content in another way. It just signed a deal with the WNBA, offering an 11-year package designed to improve the league’s exposure.
Is Disney a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 21 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 5.63% rally in its share price over the past year, the average DIS price target of $128.04 per share implies 41.67% upside potential.
