The big story on Monday — the first day of a shortened week due to Thursday's Thanksgiving holiday — was the outperformance of Disney shares, which jumped after the company abruptly changed leaders.
The company's stock surged 6.3% Monday after Disney announced Sunday that former CEO Bob Iger would come out of retirement to immediately replace Bob Chapek, who had been at the helm of the entertainment giant since February 2020.
Analysts cheered the change, saying that Iger would be able to turn the company around. MoffettNathanson even upgraded shares of Disney to "outperform" from "market perform." The firm also boosted its price target, saying the stock could surge more than 30% with new — or rather, old — leadership.
Disney is highly rated by Wall Street. Most analysts rate shares a "buy," and the upside to the consensus price target is about 23%, according to FactSet data.
JPMorgan already recommended that investors buy Disney in its post-earnings selloff and see little upside to the shares from today's move through the end of the year. There aren't any public appearances scheduled in the fourth quarter, meaning any comment from Iger before earnings is optimistic, Cusick wrote.
In addition, it's unlikely that Iger will be able to make any major changes in the near term, aside from potentially accelerating the planned purchase of Comcast's stake in Hulu.
Disclosure: Comcast's NBCUniversal is the parent company of CNBC.
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