Disney (DIS) has received a price target upgrade from Morgan Stanley. The firm raised its price target for the entertainment giant from $110 to $135 per share, reflecting a bullish outlook on the company's future prospects. This lift was fueled by promising signs in Disney's streaming endeavors and anticipated growth in its theme park revenues.

Yahoo Finance's Madison Mills shares the latest developments.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

SEANA SMITH: Well, let's take a look at Disney. It is our stock to watch this morning a call out from Morgan Stanley raising their price target on the stock to 135 bucks a share from 110. Madison Mills is on the floor of the New York Stock Exchange. The latest on that, Maddie.

Yeah, Seana. As you mentioned, this change to the price target up to $135 is based on a couple of things that I want to run through here. One of them being an anticipation of profitability within the streaming sector of the business. The other being an anticipated growth in the Parks Revenue. Focusing on that streaming part that I mentioned for a second, I think this could also be a sign that joint venture between Warner Brothers, Fox, and Disney is getting a bullish view on the street.

Now having said that, I took a look at the Yahoo Finance plus platform in the pre market this morning. It looks like Disney is trading near the very top of its 52-week range. But if you're on the app and you scroll down a little, you can see news related to this name. And we can see that Blackwells Capital did release their investor presentation to its fellow Disney shareholders this morning. This is one of the two activist investors pursuing Disney right now.

And they talked about some of the headwinds that they anticipate in spite of this upgrade to Disney's price target that we saw this morning They're talking about concerns about content and technology. The content piece feels particularly prescient right now given the extreme growth we've seen in a name like Netflix. How is Disney going to be able to compete with those other streaming giants moving forward?

BRAD SMITH: All right. Madison Mills, thanks so much for breaking that down. We've been watching Disney here pre market still higher by about 1% right now.