From Financial Modeling Prep: 2024-10-01 10:42:00

Disney (NYSE:DIS) shares dropped over 1% after Raymond James downgraded the company to Market Perform, citing challenges in the Parks division. Analysts are cautious about Disney’s near-term potential due to slowing attendance and pricing power issues. Competition from Universal’s Epic Universe in Orlando is also a concern.

Specific issues impacting Disney’s parks include attendance diversion to the Paris Olympics, a typhoon closing Shanghai Disney, and a recent hurricane affecting Walt Disney World. These disruptions have led to a more cautious outlook ahead of Disney’s fiscal fourth-quarter report. Despite challenges, Disney remains strong in the shift to streaming.

Disney’s upcoming three new cruise ships are expected to drive growth, but the capital expenditures required will pressure the company’s free cash flow in the near term. Raymond James also expressed concerns over the high costs associated with launching ESPN’s streaming service.



Read more at Financial Modeling Prep:: Raymond James Downgrades Disney to Market Perform,…