Pivotal Research analyst Brian Wieser downgraded Disney (DIS) to Sell with an unchanged price target of $93. The stock closed Friday up 10c to $108.85.
The recent rally in the shares is unwarranted and fails to reflect that a higher price paid for Fox's (FOXA) entertainment assets would reduce the value of Disney to its shareholders, Wieser tells investors in a research note. Further, the analyst believes the acquisition not being completed would also be negative for Disney as it would mean the company would be unable to realize the synergies it expects to produce from the transaction.
The strategic position of Disney would "further be weakened relative to what would otherwise be possible without the transaction," Wieser contends.
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