Key Takeaways
- The Walt Disney Company saw its shares slide Tuesday as analysts at Raymond James downgraded the stock, citing concerns about headwinds facing its parks division.
- The firm warned natural disasters including Hurricane Helene could negatively affect Disney’s financial results.
- Disney could also face more competition from Universal’s Epic Universe opening in Orlando next summer.
The Walt Disney Company (DIS) saw its shares slide Tuesday as Raymond James analysts downgraded the stock, citing concerns about its parks division.
The analysts dropped their rating for Disney to “market perform” from “outperform,” and maintained a price target of $101. Shares finished 2.2% lower at $94.05 Tuesday, and have lost about 4% over the last three months, though they remained 4% higher for the year so far.
‘Parks Are Under Pressure’
The analysts said Disney’s “parks are under pressure,” with a “questionable consumer outlook” as demand slows from a post-pandemic surge, adding they “find stock outperformance likely to be difficult until Parks improve.”
Disney’s iconic theme parks could also have to contend with more competition, when Universal launches its Epic Universe next summer, the analysts noted.
Typhoon, Hurricane Could Hit Earnings
Disney’s fiscal fourth-quarter results could also take a hit from several factors including extreme weather, Raymond James warned, after a typhoon caused the temporary closure of Shanghai Disneyland last month and Hurricane Helene likely affected attendance at Disney World in Orlando, Florida.