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.