Why Disney Shares Are Falling Today

The Walt Disney Co DIS is trading lower Friday following bearish analyst coverage from Guggenheim.

Guggenheim analyst Michael Morris downgraded Disney from a Buy rating to a Neutral rating and announced a $165 price target.

Morris cites concerns around the pace of the company's earnings growth in its direct-to-consumer and parks businesses as a reason for the downgrade. 

The Guggenheim analyst highlighted Disney's most recent 10K filing in which the company said it expects total programming spend to increase by $8 billion in 2022.

"The Company currently expects its fiscal 2022 spend on produced and licensed content, including sports rights, to be as much as approximately $33 billion, or approximately $8 billion more than fiscal 2021 spend of $25 billion," Disney said.

See Also: Why JPMorgan Shares Are Sliding Today

DIS Price Action: Disney has traded as low as $142.04 and as high as $203.02 over a 52-week period.

The stock was down 3.63% at $149.80 at time of publication.

Photo: StockSnap from Pixabay.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: DowngradesPrice TargetAnalyst RatingsMoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!