Goldman Sachs Downgrades Walt Disney (DIS) to Neutral; Rising ESPN Competition

Goldman Sachs downgraded Walt Disney (NYSE: DIS) from Conviction Buy to Neutral with a price target of $70, citing limited upside and more competition for ESPN.

The firm sees two issues overhanging the company, specifically its largest asset, ESPN: 1) New competition from Fox Sports 1 that launches this August; and 2) Slower Cable Network segment OI growth, due to cost step-ups on new sports rights deals starting in 2014.

Shares of DIS are up 55% since be added to the Conviction Buy list on 2/27 versus a 19% move in the S&P during that time.

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here. Shares of Walt Disney closed at $64.33 yesterday, with a 52 week range of $46.53-$67.89.

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