Imperial analyst David Miller weighed in on Disney in November, setting the company with an outperform rating. Since then, the stock has risen 26%, making Disney's valuation too rich for the firm.
In spite of the downgrade, the firm kept its $147 price target on the stock, while Disney closed at a record level of $141.74 on Thursday. Disney was trading at $139.35 Monday.
Imperial analyst David Miller sees all of the near-term catalysts he anticipated -- like the release of "Avengers: Endgame," the opening of two Star Wars theme parks, and the refinancing of various debts from the company's purchase of 21st Century Fox assets -- as already baked into the stock.
The one catalyst yet to be executed by the company is the resumption of share buybacks, which could happen about a year from now, according to Miller.
Disney is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.