Disney responds to activist advice

Article Excerpt

WALT DISNEY CO., $98.99, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $179.5 billion; No dividend) has now added Carolyn Everson, a veteran technology and media executive, most recently president of grocery delivery company Instacart, to its board of directors. That’s after activist investor Dan Loeb sent a letter to Disney’s CEO Bob Chapek asking him to “refresh” the board. Loeb still wants Disney to cut administrative and production costs, and, if possible, buy out Comcast’s stake in Hulu. All in all, Loeb’s involvement points to Disney’s underlying value, and his demands will likely result in positive changes for the company. Walt Disney Co. is still a buy. buy. …