Last night, a bombshell of Disney news dropped, Bob Iger is returning as Disney CEO and Bob Chapek has stepped down. Well, the late-night news was good for stocks.
The company’s shares rose 8% early Monday morning. The “magic is back,” MoffettNathanson analyst Michael Nathanson wrote in a note Monday upgrading Disney’s stock from “market perform” to “outperform” and setting a $120/share 12-month price target.
On November 7, Disney shares dipped to their lowest level in more than two years, closing at $86.75/share. That was the lowest closing price for Disney shares since March 20, 2020, amid the dramatic market sell-off at the outset of the COVID pandemic. As of Friday, the stock had fallen 41% year to date.
In bringing Iger back as CEO, the Disney board said it had given the exec a mandate “to set the strategic direction for renewed growth and to work closely with the board in developing a successor to lead the company at the completion of his term.”
