D’Amaro’s Changes Already Begin, Disney Stock (NYSE:DIS) Notches Up

The new CEO at entertainment giant Disney DIS +0.46% ▲ , Josh D’Amaro, has already started making changes, and one of them will be quite the heel-face turn. Disney’s Villains Land, which got its start from Universal’s CMCSA +0.41% ▲ Epic Universe, is planning to tone things down. That might seem counterintuitive, even if there is a reasonable basis behind it. And Disney shareholders seemed all right with this, as Disney shares ticked up fractionally in the closing minutes of Friday’s trading.

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It was not out of line for Disney to build a section of the park for the villains. After all, good storytelling requires good villains, to some extent, so why not build them a bit of a park? But the idea of a villain-themed theme park might have been a bit much for some, particularly for the younger set, who might have had a tougher time wrapping its head around objects of fear and evil being publicly celebrated.

Several changes are already settling in. Plans for a Maleficent-themed roller coaster have been scrapped in favor of an indoor water ride like Pirates of the Caribbean. Meanwhile, in what actually makes a lot of sense, the roller coaster that goes in will be themed around The Emperor’s New Groove. Given that that movie actually featured a roller coaster at one point—when Yzma and Kronk are lowered into Yzma’s lab—actually making such a roller coaster happen would be a natural fit. It is almost surprising that that has not yet happened.

Three Million Cast Compliments and Climbing

Meanwhile, those concerned about labor issues at Disney may want to take note, as Walt Disney World and Disneyland recently hit a combined total of three million Cast Compliments. The Cast Compliments system is designed to give parkgoers a way to send messages of appreciation to the cast members who, in some way, made their day particularly special.

Whether it is a ride operator who delivers extra comments on rides or a photographer who works to capture special moments, the end result is a cast that has just a little more reason to keep delivering magic than they did before. And more than likely, a way to easily point out tangible worth to higher-ups when it comes time to negotiate pay raises.

Is Disney Stock a Buy or Hold?

Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 17 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 7.25% loss in its share price over the past year, the average DIS price target of $135.41 per share implies 27.65% upside potential.

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