Imperial Capital downgraded Walt Disney Co. shares (DIS) to underperform from in-line on Thursday, on expectations the company's theme parks and film business will be hurt by the coronavirus pandemic. Analyst David Miller lowered his stock price target to $105 from $107, about 14% below its current level. Disney shares have climbed 21.2% in the last four weeks, and "we think that based on our experience, the stock has risen too far too fast and the performance is simply due to excitement around the prospects of the domestic theme parks re-opening, for which Disney submitted a plan to Orange County, Florida government officials just yesterday," Miller wrote in a note to clients. The stock also got a boost from the official re-opening of "Disney Springs" in Florida on May 15, a small shopping complex that will have little effect on the company's earnings, said Miller. The analyst is advising investors to take profit on Disney stock as it looks like a name that should be traded rather than owned, at least for now, he wrote. Disney shares were down 0.4% premarket and have lost 16% in the year to date, while the Dow Jones Industrial Average has lost 10%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 28, 2020 06:23 ET (10:23 GMT)
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