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The entertainment conglomerate The Walt Disney Company (NYSE: DIS) or simply Disney is receiving distinct thoughts from the market. However analysts are hoping good from the company considering the performance and potential outlook. Several recent changes are also likely to impact the company’s journey ahead and so on Disney stock price.
Disney Stock at Significant Discount
After attaining its all time high in March 2021, when DIS stock was trading at around 197.16 USD, it hardly witnessed any notable growth. Although it is currently down by about 55% from its ATH while trading at 88.01 USD, the stock of entertainment giant is at a huge discount.
Analysts put Disney stock under watch, suggestions varying from hold to buy and even buy-back after a month or two even after sale. This shows by and large an optimism from the stock to perform better in future and worth holding.
As mentioned earlier, currently the stock price is way down from its high point. Simply Wall Street analysts consider DIS stock to be undervalued from its intrinsic value. Given the intrinsic value at around 141.64 USD, currently it is available at bargain.
The future outlook for the company also seems bright considering the company is expected to report about double the profit in upcoming years. Simply put, higher the cash flow for stock leads to higher share valuation.
Return of Bob Iger As Disney CEO
In November 2022, the board of Disney reinstated Bob Iger as CEO. His reign within the company is expected to damage control and navigate through several challenges. Although he was said to have two years as CEO of Disney until a potential successor, it would be expanded if needed.
One of the reasons why the company was struggling throughout the time was increasing dissatisfaction from now former CEO Bob Chapek. Although his several decisions were worth considerable but by and large there was no significant growth. At worst, the company got hits in the form of legal spats, heavy losses from streaming services business, price hike at theme parks, backlash, etc.
Iger is expected to bring the struggling Disney+ streaming services back on track. The sector is now becoming crowded given the competition is on gradual increase. Working towards profitability would be tough yet crucial for the company.
Potential layoffs could still be counted as a possibility given that Iger did not extirpate the decision of freezing the hirings.
Analysts Optimism With Disney’s Growth
The Wall Street Journal analysts estimate the average price target for Disney stock at 119.60 USD with a ‘buy’ stock rating. It’s worth noting that the rating has witnessed an increase from being ‘overweight’ for over a couple of months.
While Barron’s analysts gave the stock rating of ‘buy’ with a similar price target of 119.60 USD.
Overall the company got affected due to multiple reasons that are the same by which the broader market got affected. Yet the potential could not be for a company with 160.49 billion USD worth market cap and 82.7 billion USD worth revenue. A great company with a robust outlook at a cheap price is always a good investment.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
