KeyBanc Capital Markets, an investment advisory company, downgraded Disney’s stock after the company lost $900 million over the last 8 films.
The company was moved from overweight to sector weight.
Disney’s stock price is now at $89.28 from a 2021 high of $200.
“While Disney appears less expensive versus its historical average, we believe the stock is unlikely to work until a number of items have line of sight to being resolved,” analysts led by Brandon Nispel concluded.
Disney parks have also experienced lower park attendance compared to its expectations, as well as slow subscriber growth across its streaming platform.
“We prefer to step aside, acknowledging meaningful uncertainty, and wait for further catalysts, as buying the dip has been a losing trade,” a note from Nispel read.
KeyBank suggested that Disney may have to increase its streaming service prices to recover while still maintaining its current customer base.
Reporting from The Post Millennial:
Last week, The New York Post reported that ESPN laid off 20 on-air personalities, including some of the network’s biggest stars, such as Jeff Van Gundy, Max Kellerman, Keyshawn Johnson, Suzy Kolber, and Jalen Rose in an effort to save tens of millions of dollars.
