Shares of Walt Disney (DIS) - Get Report  rose nearly 1% to $132.91 in trading Tuesday after analysts at Bank of America Merrill Lynch added the company to their 'US 1' list while raising their price target to $168 from $144.

The price target represents a potential 28% upside from the stock's closing price on Monday of $131.68. 

The firm said that the company's yet-to-be-launched direct-to-consumer product Disney+ could be a notable value driver of shareholder growth thanks to its high quality intellectual property and expanded library of original programming. 

In the medium-term, analyst Jessica Reif Ehrlich noted that Disney's movie studio has several high profile releases on the horizon, including "Avengers: Endgame," "Toy Story 4," and "The Lion King." 

Ehrlich also estimated that the acquisition of most of rival Fox's assets can generate $2 billion in annual cost savings by fiscal 2021. 

Walt Disney is a holding in Jim Cramer's Action Alerts PLUS charitable trust