Disney has been making significant strides in its turnaround journey. Evercore ISI's recent move to raise the price target on Disney shares to $134 per share from $128 indicates a positive outlook. This implies a substantial upside of more than 16.5% from Friday's close. The analysts maintained their buy-equivalent outperform rating on the stock.

Disney's Stock Performance Amidst Volatility

Shares of Disney fell 1% to just below $114 each on Monday, marking their first down day in 10 sessions. However, this was preceded by a winning streak that included a 6.2% post-earnings rally on Thursday and a 5.5% gain on Friday. Disney's performance in the fiscal fourth quarter was impressive, with the company beating adjusted earnings per share and revenue targets. For fiscal 2024, adjusted EPS grew by 32% year-over-year to $4.97. The company also provided a robust long-term outlook, calling for high single-digit EPS growth in fiscal 2025 and double-digit growth in fiscal 2026 and 2027.Analysts at Evercore took this guidance and projected a path to full-year EPS of $7 in fiscal 2027. This is a significant milestone as Disney has not achieved such earnings in a single year since fiscal 2018 due to years of steep streaming costs, setbacks from the Covid-19 pandemic, and Hollywood strikes.The recent run in Disney stock reflects renewed confidence in management's ability to get the financial house in order. The company's cash management and aggressive cost-cutting measures are finally bearing fruit. Profitability in streaming is on track, and a better slate of movies at the box office is also contributing to the positive sentiment.On the post-earnings conference call, Disney CEO Bob Iger emphasized the increased value of a successful Disney movie in today's digital age. With an increased number of consumer touch points including streaming, parks and resorts, cruise ships, consumer products, and games, the multiplier effect means that the system economics of the movie business has never been stronger.

Jim Cramer's Perspective on Disney

Jim Cramer has been cautious about media stocks as companies struggle to find their footing in a streaming-focused world. However, he still has a positive outlook on Disney due to its core strengths in movies, streaming, and theme parks. These core businesses create an ecosystem that makes the products and services more valuable together."Be aware the [media] group has a very big overhang. But would I trade out of Disney? No, because Disney is changing the entire narrative. That’s what matters to me," Jim said on Monday's Morning Meeting. Despite Disney's recent rally, there is still significant upside ahead. The firm has a buy-equivalent 1 rating on the stock and a $130-per-share price target.The next big goal for Disney is to achieve a 10% operating margin in its entertainment direct-to-consumer business in fiscal 2026. The more money Disney makes in DTC, the less worried investors will be about the shrinking profits of its traditional media business.As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before he makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If he has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.