Disney: Changes Are on the Way Despite the Proxy Fight Victory

Walt Disney has won its proxy battle with Trian and other activist investors, as shareholders elected Disney’s entire recommended slate of directors. Trian and the two nominees it submitted were the biggest threat to Disney’s slate, but since Trian released its very detailed presentation last month, we’ve maintained that the outcome wasn’t nearly as consequential as suggested by the publicity that the contest generated. We’re maintaining our $115 fair value estimate and believe the stock’s recent appreciation now reflects forthcoming improvement, which we expect will occur regardless of which side had won.