Disney downgraded to Neutral from Outperform at Macquarie - InvestingChannel

Disney downgraded to Neutral from Outperform at Macquarie

Macquarie analyst Tim Nollen downgraded Disney to Neutral from Outperform with a price target of $103, down from $125. The analyst sees near-term uncertainties weighing on Disney’s earnings, valuation, and investor sentiment. Linear networks are deteriorating, direct-to-consumer is a “work in progress” with the biggest decision and execution on ESPN still ahead, and Parks growth is slowing, the analyst tells investors in a research note. As such, the firm believes the shares will be “range-bound for now.” Progress is underway in Disney’s streaming service as operating losses abate, but prior guidance of DTC attaining profitability during fiscal 2024 “may now be off the table,” Macquarie says.

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