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Disney shares advance after upgrade, 'Jungle Book' open

Walt Disney's stock gained nearly 3 percent Monday after a big upgrade from Pivotal Research Group as well as an impressive opening weekend from "The Jungle Book" movie.

Pivotal upgraded the media giant's stock to "buy" from "hold" and raised its price target to $121, from $98.58. The stock traded near $101 Monday.

"We can point to investors already pricing in many concerns (such as the potential impact of cord-shaving on ESPN) but can also identify many reasons for optimism, such as the opening of Shanghai Disney Resort in June as well as the company's upcoming film slate," Pivotal analyst Brian Wieser said in a note to clients.

Meanwhile, analysts at Piper Jaffray reiterated their "buy" rating on the stock Sunday after the live-action adaption of "The Jungle Book" recorded the second-best opening weekend ever, bringing in more than $103 million.

"The film has moved from the 'original film' category into the 'franchisable' category," Stan Meyers, one of Piper's analysts, told CNBC on Monday.

"Given the proximity to Disney's 'Zootopia' release, we were a bit cautious on the film domestically, expecting it to reach $180 [million] for the full run; now given the strong momentum, a rare 'A' CinemaScore rating and limited competition, we expect the film to cross the $300 [million] mark," Piper's said.

Meyers added he expects the upcoming Disney movie slate to drive the stock moving forward.

Shares of Disney are up nearly 5 percent in the last three months, but are still down about 3 percent in the past year.

Disclosure: Piper is a market maker for Disney.