The firm reduced its price target to $102 from $112 on shares of the Burbank, CA-based entertainment company.
"We believe the threats to the traditional ecosystem will increase as [multichannel video programming distributors] start to integrate [over-the-top content] offerings into set tops and as they shift focus to their data business," Drexel Hamilton wrote in a note.
The firm cut its subscriber estimates due to cord-cutting, and noted the company's growth will likely be weighed down by Shanghai losses and "difficult" studio comps.
Both Disney and fellow media company Time Warner (TWX) will soon face a 190% increase in the average price for each NBA season as the new season and deal terms take effect next month, Drexel Hamilton added.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Disney's strengths such as its growth in earnings per share, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: DIS
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 article's author.