Disney's Stock Faces The Unhappiest Place On Earth: A Downgrade
Portfolio Pulse from AJ Fabino
Macquarie Research downgraded Disney (NYSE:DIS) from Outperform to Neutral and cut the price target from $125 to $103 due to structural and macro headwinds. Analyst Tim Nolan cited deteriorating linear networks, a work-in-progress Direct-to-Consumer strategy, and slowing growth in the Parks segment as reasons for the downgrade.
May 19, 2023 | 3:51 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Disney's stock downgraded by Macquarie Research due to structural and macro headwinds, including deteriorating linear networks and a work-in-progress Direct-to-Consumer strategy.
The downgrade by Macquarie Research is based on several factors that could negatively impact Disney's stock in the short term. The deteriorating linear networks, which account for a significant portion of Disney's revenue and operating income, are a major concern. Additionally, the Direct-to-Consumer strategy is still a work in progress, and the slowing growth in the Parks segment adds to the headwinds. These factors combined make it likely that the stock price will be negatively impacted in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100