- Disney (NYSE:DIS), up 18% since Oct. 17, is overpriced according to BMO analyst Daniel Salmon, who cut his rating to Underperform in the past week, Barron’s says.
- Salmon cites continuing subscription losses for ESPN and “more risk than opportunity” at the film studio.
- Noting bullish investor sentiment, Salmon writes, "We think this positive turn comes too early and the risk/reward skews negatively... We still see more negative data points than positive for ESPN and believe consensus Studio estimates embed better performance per film, which is a key risk, in our opinion."
- Salmon’s target price for DIS is $88, compared to Friday’s close of $107.66.
- Add to that Bob Iger’s looming retirement in 2018; Barclays notes that DIS has risen more than 350% over his tenure, and there’s no clear succession plan in place.