Disney Loses A Bull: Analyst Says Mouse House Fraught With Uncertainty And Buying The Dip Has 'Been A Losing Trade'
Portfolio Pulse from Shanthi Rexaline
KeyBanc Capital Markets analyst Brandon Nispel has downgraded Walt Disney Co. (NYSE:DIS) from Overweight to Sector Weight, citing five reasons. These include high expectations for Disney's domestic Parks, doubts about attendance and per-cap spending trends, potential margin pressure due to Disney's new labor contract in Florida and the accelerated depreciation of the Starcruiser, stalled direct-to-consumer subscriber growth, and structural changes in content. Disney shares were down 0.79% in premarket trading.
June 29, 2023 | 10:37 am
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NEGATIVE IMPACT
Disney's stock has been downgraded by KeyBanc due to several concerns including high park expectations, margin pressure, and stalled DTC growth. This could negatively impact the stock price.
The downgrade by KeyBanc is based on several factors that could negatively impact Disney's performance. These include high expectations for Disney's parks, potential margin pressure due to a new labor contract and the accelerated depreciation of the Starcruiser, and stalled DTC growth. These factors could lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100