Disney (DIS) Stock Slips, Downgraded at FBR Capital
NEW YORK (TheStreet) -- Shares of Walt Disney (DIS) - Get Report are down 1.02% to $96.40 late Tuesday morning as FBR Capital cut its rating on the stock to "market perform" from "outperform," Barron's reports.
The downgrade follows the underperformance of the company's recent two movies "Alice Through the Looking Glass" and "The BFG."
"At this point, we see the studio at peak earnings this year, a level that can be maintained going forward but probably not growing much from here, with Disney's domestic box office share near 22% this year, close to the highest levels ever achieved by any studio," the firm wrote in a note cited by Barron's.
In fiscal 2017, the stock will struggle to deliver much upside despite the quality of the company's content and theme park portfolio, according to FBR.
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 revenue growth, growth in earnings per share, 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