According to a Reuters report, activist investor Blackwells Capital has urged media and entertainment conglomerate Walt Disney (NYSE:DIS) to develop an artificial intelligence (AI) strategy. Blackwells’ presentation, seen by Reuters, claims that such a strategy could boost Disney’s stock price by as much as 129% – that is, from its current level of $107.74 to $246.96 per share.
The activist investor highlighted that since the beginning of 2023, the largest technology companies have added more than $5.2 trillion to their cumulative market capitalization after announcing major AI initiatives. As a result, Blackwells wants Disney to adopt a “technology native stack and mindset” and hire a corporate chief technology officer to focus on this transformation.
Besides Nelson Peltz‘s Trian Fund Management, Blackwell is also pushing for Board representation at Disney. While Blackwells is in favor of Bob Iger‘s leadership at Disney, the potential changes that it wants at the company include spinning off its park and hotel assets into a real estate investment trust.
What Is the Target Price for DIS Stock?
Analysts remain cautiously optimistic about DIS stock with a Moderate Buy consensus rating based on 17 Buys, four Holds, and one Sell. Year-to-date, DIS has gained by more than 15%, and the average DIS price target of $116.71 implies an upside potential of 8.3% at current levels.
