He also said that the company will be restructured in the coming weeks.
MoffettNathanson analysts now see upside in Disney shares to $120.
Walt Disney Co (NYSE: DIS) is in focus this morning after Bob Iger announced his first big move as the “renamed” Chief Executive of the entertainment conglomerate.
Iger fires the Head of DMED division
On Tuesday, Iger announced the departure of Kareem Daniel – the head of Media and Entertainment Distribution and said the company will be restructured in the coming weeks. His memo to DMED employees reads:
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I’ve asked [executives] to work together on the design of a new structure that puts more decision-making back in the hands of our creative teams and rationalises costs.
Bob Iger, it looks like, plans to undo much of what the ousted CEO Bob Chapek (read more) envisioned for the Walt Disney Co when he created the DMED division.
Versus their year-to-date high, Disney shares are down about 40% at writing.
Should you buy Disney stock on Iger’s return?
Return of Iger as the top boss is a welcomed surprise for MoffettNathanson. Also on Tuesday, analysts at the independent research firm recommended buying Disney shares and said:
We have not recommended DIS since May 2020 but we applaud Disney’s Board for courage to make this change. We’ve never hidden our affection for Mr Iger and [his role] in building Disney into global powerhouse that it has become.
Wall Street was particularly put off earlier this month when the Walt Disney Co reported broadly disappointing results for its fourth financial quarter.
But now, MoffettNathanson sees upside in this stock to $120 a share. That’s about a 25% premium on the price at writing.
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