Activist targets Disney

Article Excerpt

WALT DISNEY CO., $99.04, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $182.2 billion; No dividend) faces a new challenge. Activist investor Nelson Peltz has acquired a 0.5% stake in Disney and plans to fight for a seat on its board. Peltz’s Trian Fund Management says said it doesn’t want to replace returning CEO Bob Iger. Instead, it wants to work with Iger to ensure a successful CEO transition within the next two years. They are also calling on the company to cut costs and turn a profit at its Disney+ streaming business, which has been losing money as it expands. All in all, the activist’s involvement points to Disney’s underlying value, and Peltz’s demands will likely result in positive changes for the company. Walt Disney Co. is still a buy. buy…