Brean Capital analyst Alan Gould is out today with a research note on Walt Disney Co (NYSE:DIS), after UK website Betaville reported that Disney and Twitter Inc (NYSE:TWTR) have agreed on a takeout price in the high-20’s and are now thrashing out a deal.

Gould commented, “Where there is smoke, there is often fire; but we continue to believe a Disney acquisition of Twitter at an estimated $18 billion valuation does not make sense and is not consistent with its historic M&A strategy. Disney shares are becoming inexpensive relative to the market, but still remain a premium to its peers. Further, we do not see near-term earnings as a positive catalyst. Given the high bar in film and domestic park earnings, we expect DIS’ premium multiple will remain modest over the near term. While we like DIS longer term, we continue to prefer CBS or TWX for those willing to play a deal stock.”

As such, Gould reiterates a Hold rating on Walt Disney shares, without providing a price target.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Gould has a yearly average return of 5.6% and a 71% success rate. Gould has a 25.0% average return when recommending DIS, and is ranked #958 out of 4197 analysts.

Out of the 31 analysts polled by TipRanks, 14 rate Walt Disney stock a Buy, 15 rate the stock a Hold and 2 recommend a Sell. With a return potential of 17%, the stock’s consensus target price stands at $108.96.