Disney (DIS) Stock Slides, Downgraded to ‘Hold’ at Stifel

Disney (DIS) stock is falling late Wednesday morning as Stifel cut its rating on shares to ‘hold’ from ‘buy.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Walt Disney (DIS) - Get Report are retreating 1.48% to $98 late Wednesday morning as Stifel reduced its rating on the stock to "hold" from "buy." The firm has a $110 price target on shares, Barron's reports.

The downgrade comes as the firm believes valuation is relatively full.

"Given the stock price and our view on relatively flattish OI growth over the next two years (particularly averaging our Studio/CP given the on/off years for the "Star Wars" franchise), we now move to a Hold rating," Stifel wrote in a note cited by Barron's.

Additionally, from a valuation and growth perspective, the firm continues to see Disney as somewhat of a split story.

Disney's studio and corresponding consumer products segments continue to deserve a strong multiple reflecting the very strong pipeline which the studio continues to have, Stifel said. The parks segment should also show growth.

"On the other side of the ledger is the Media segment. While there has been some relief/reduced concern around the carriage and MVPD subscriber numbers at ESPN YTD, we estimate that F2017 will be a likely flat year to possibly at Cable OI," the firm noted.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DIS

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