Disney (DIS) shares rose greater than 2% on Monday following a recent improve on Wall Avenue.Barclays analyst Kannan Venkateshwar upgraded the inventory to Obese from Equal Weight and boosted his worth goal on shares to $135 from the prior $95. The transfer implies roughly 15% upside primarily based on present buying and selling ranges of about $120 a share.Venkateshwar argued better-than-expected free money move and earnings steerage, coupled with “tactical tailwinds” such because the Hollywood strikes, Hulu’s consolidation, and value cuts, have helped buoy investor confidence.In the meantime, “the propensity amongst media traders to be lengthy Disney, has resulted within the inventory outperforming broader markets meaningfully up to now this yr, at a tempo quicker than we anticipated.”The inventory has been on a tear for the reason that begin of the yr, up greater than 30% in comparison with the S&P 500’s (^GSPC) 10% rise over that very same time interval.It is a vital turnaround for the corporate after its inventory worth hit multiyear lows final yr.The media large has been grappling with challenges that embrace a declining linear TV enterprise, slower development in its parks enterprise, and losses in its streaming enterprise. A heated proxy battle with activist investor Nelson Peltz has additionally clouded the corporate’s outlook.However Venkateshwar argued Disney’s subsequent section “could also be extra impactful as various turnaround parts nonetheless stay work in progress and will manifest extra in numbers beginning subsequent yr.”In his bull case, the analyst mentioned sooner-than-expected streaming profitability may function a boon to the inventory worth.”We anticipate Disney streaming to interrupt even doubtlessly 1 / 4 or two sooner than firm steerage of This autumn 2024,” he defined. “That is partly pushed by the tailwinds from value cuts over the previous couple of quarters and up to date worth will increase.”Disney CEO Robert Iger attends the premiere of FX’s “Feud: Capote Vs. The Swans” on the Museum of Trendy Artwork on Tuesday, Jan. 23, 2024, in New York. (Evan Agostini/Invision/AP)Venkateshwar mentioned he believes Disney will possible obtain streaming margins “which can be higher than Netflix,” estimating potential margins within the 25% to 30% vary, “which isn’t too totally different from the place linear margins immediately are.”Story continuesOther “upside narrative surprises” may embrace ESPN’s yet-to-be-announced streaming companions for its over-the-top service, set to debut someday in fall 2025, along with a refocused consideration on long-term succession plans post-proxy battle.Conversely, the analyst’s bear case calls out declining non-sports TV viewership as linear community income falls amid elevated wire reducing. Streaming, though a possible optimistic, is also a web damaging if subscriber development doesn’t decide up and pricing headwinds hit income development.Alexandra Canal is a Senior Reporter at Yahoo Finance. Observe her on X @allie_canal, LinkedIn, and e mail her at alexandra.canal@yahoofinance.com.Click on right here for the most recent inventory market information and in-depth evaluation, together with occasions that transfer stocksRead the most recent monetary and enterprise information from Yahoo Finance