NEW YORK (TheStreet) -- Shares of Walt Disney Co. (DIS) - Get Report were lower in mid-afternoon trading on Monday, after the stock's rating was downgraded to "hold" from "buy" at Drexel Hamilton this morning.
The firm reduced its price target on Disney shares to $102 from $112.
The firm said part of the reason it cut the stock's rating was because it could see an uptick in content costs for NBA broadcast rights, noted CNBC's Scott Wapner on Monday afternoon's "Halftime Report.
The NBA cost won't impact the entertainment company as badly as some think, The Street's Jim Cramer told Wapner, adding that he wasn't thrilled with the rating cut.
In addition the "Shanghai losses" that the firm mentions, in reference to Shanghai Disneyland that opened this past June, won't be so bad either, according to Cramer. "The Shanghai cost is a total win," he said.
Investors have to think long-term when it comes to franchises like Disney, Cramer advised.
Disney and other media companies simply haven't got their footing during this "technological period of transition," Ritholtz Wealth Management CEO Josh Brown added.
"But if you're going to bet on anyone to get it right eventually, it will be Disney," Brown noted.
"Right, eventually. But eventually is okay for people at home," Cramer said.
Separately, 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.
TheStreet Ratings team rates Disney as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: DIS