Walt Disney shares fall after analyst Guggenheim downgraded it to neutral

Guggenheim downgraded Walt Disney (NYSE: DIS) from a “buy” rating to a “neutral” rating in a research note issued to investors on Friday.

In premarket Friday, Disney shares fell 2.02% on the news. As of 08:38 a.m. EST, the shares traded at $152.25, down $3.19 in value. It closed Thursday’s trading at $155.44, down $2.36 or 1.5%. Its market capitalization was $282.5 billion after 9,378,806 tradable shares were traded in 24 hours.

The Fly was the first to report it.

They currently have a $165.00 price target on the stock of the entertainment behemoth. Guggenheim’s target price implies a 6.15% potential upside from the stock’s current price. The decline occurred due to increased costs in Disney’s direct-to-customer segment and slower recovery in park segments.

DIS has recently received attention from several other research analysts.

In a research note issued on Wednesday, September 22, Evercore ISI reissued a “buy” rating and set a $210.00 price target on Walt Disney shares.

In a research note issued on Thursday, November 11, Goldman Sachs Group reduced their price target on Walt Disney from $218.00 to $209.00 and assigned the stock a “buy” rating.

In a research note issued on Wednesday, November 10, Rosenblatt Securities reissued a “buy” rating and set a $219.00 price target on Walt Disney shares. In a research note issued on Thursday, November 11, Wolfe Research reduced their price target on Walt Disney from $209.00 to $200.00 and assigned the stock a “outperform” rating.

Finally, in a research note issued on Monday, November 22, Wells Fargo & Company reduced their price target on Walt Disney from $203.00 to $196.00 and assigned the stock an “overweight” rating.

One equities research analyst has given the stock a sell rating, six have a hold rating, and twenty-two has a buy rating. Walt Disney has a consensus rating of “Buy” and an average price target of $196.93, according to MarketBeat.

Furthermore, there is a chance that Disney will lose its beloved Mickey Mouse, as well as animated characters Winnie the Pooh and others from British author A.A. Milne and illustrator E.H. Shepard’s Pooh books, which should keep Disney’s legal department busy.

After 95 years of copyright protection, the characters from Milne and Shepard’s 1926 book “Winnie-the-Pooh,” including Pooh, Christopher Robin, Owl, Eeyore, Rabbit Kanga, and Roo, entered the public domain on January 1. Tigger, the bouncing tiger who first appeared in the 1928 book “The House on Pooh Corner,” will enter the public domain when his copyright expires on January 1, 2024.

On January 1, 2024, Walt Disney’s character Mickey Mouse, as depicted in his 1928 short cartoon “Steamboat Willie,” will enter the public domain.

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