Disney (stock) Falls on Downgrades as Park Woes Offset Streaming Gains
Walt Disney was cut to neutral from buy-equivalent ratings at UBS and Credit Suisse, which said the company’s theme parks exposure to Covid-19 is now outweighing catalysts from its video-streaming foray. Shares fell 2.6% pre-market.
UBS analyst John Hodulik lowered his price target to $114 from $162, saying theme park “profitability will be impaired for a longer period of time given the lingering effects of the outbreak and
now assume an opening date of Jan. 1 as our base case”.
*Well, that's an unwelcome headline on Monday morning. Important to note this analyst is not reporting "news" but rather using Jan 1st date to calculate earnings and a price target (i.e. "base case"). He shouldn't have official information because the company would have to report it if official. I'm going to choose not to agree with this one.