The investment firm also lowered its price target to $105 a share from $107, with the latest figure indicating 14% downside from the entertainment giant's Wednesday closing price.
Disney shares have risen "too far too fast" over the past four weeks when they climbed 21%, Imperial Capital says,
Analyst David Miller says the runup has been fueled mostly by prospects for the Burbank, Calif., company's theme-park division, especially after the company said it would submit plans to reopen its theme parks in Florida.
Imperial downgraded Disney a year ago due to valuation concerns. Miller notes that those concerns were apparent even before the coronavirus outbreak and have only heightened over the past 12 months.
Still "certain portions of the news flow force us into some assumptions that, as of now, we believe are rational and logical, but we are obviously in a highly fluid situation, and estimates could shift dramatically depending on timing of select park reopenings, volumes, ticket prices, and currency," Miller wrote.
Disney operates four theme parks at its Walt Disney World Resort in Orlando, Fla., which bring in more than 150 million visitors during a normal year.
In the year ended in September 2019, Disney said its parks, experiences and products division, its largest, generated $26.3 billion in annual revenue.
Disney shares at last check slipped 0.4% to $121.