ValueAct Capital has built a large stake in Walt Disney and believes the stock price could double.
Why it matters
This is significant as it indicates confidence in Disney's potential for growth and suggests that the stock is undervalued. It also highlights the ongoing pressure from activist investor Nelson Peltz's Trian Fund Management.
What the papers say
ValueAct Capital has suggested that Disney's stock price could trade between $120 and $190 a share, far above its current $94.19 price. CEO Bob Iger's Disney is well positioned in terms of streaming subscribers and has a content library that spans Animation, Pixar, Star Wars, Marvel, and general entertainment, according to ValueAct. Its theme parks can help earn more revenue from its characters and stories. On the other hand, Disney is facing pressure from activist investor Nelson Peltz's Trian Fund Management.
How we got here
Disney has been grappling with a decline in its traditional television and movie business, and its stock price has dropped. The company has been working on cost-cutting measures and restructuring to improve profitability. ValueAct Capital's stake in Disney adds to the ongoing pressure from activist investor Nelson Peltz's Trian Fund Management.
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