The Walt Disney Company (DIS) has ramped up its CEO hunt with a new leader. The company has appointed James Gorman, ex-CEO of Morgan Stanley (MS), to head the succession planning committee responsible for finding a successor to current CEO Bob Iger. Gorman joined Disney’s board earlier this year. He is also the executive chairman of Morgan Stanley and is expected to leave his position there on December 31.
Disney’s CEO Search Heats Up
Disney’s CEO search, prompted by activist investor Nelson Peltz’s criticism of the company’s performance and succession planning, has been ongoing for months. A succession planning committee, including General Motors’ (GM) CEO Mary Barra, and Lululemon Athletica (LULU) CEO Calvin McDonald, has met six times in 2024 to address the issue. Disney is considering both internal and external candidates for the role.
Bob Iger, reappointed in November 2022 and extended through 2026, will leave when his contract ends. Under Iger, Disney has faced challenges like declining park attendance, falling cable viewership, rising debt, and financial pressures. The new CEO will need to tackle these ongoing issues.
Insights from TipRanks Bulls Say, Bears Say Tool
According to the TipRanks Bulls Say, Bears Say tool, bears are concerned about the continued impact of inflationary pressures on Disney’s theme park business.
Meanwhile, bulls believe that Disney trades at an attractive valuation and has an advantage with its valuable intellectual property, including characters and movies. Additionally, analysts are optimistic about the steady growth in its streaming subscriptions.
What Is the Price Target for DIS Stock?
Despite the challenges, DIS stock commands a Strong Buy consensus rating based on 19 Buys versus four Hold ratings. On TipRanks, the average Walt Disney price target of $118.53 implies 30.7% upside potential from current levels. The shares have lost 15.3% over the past six months.
