Disney Stock Dips Despite Star Wars Performance
As of this writing, Disney stock is down nearly 4% to 107.64, despite the record breaking performance of Star Wars: The Force Awakens. This poor performance is due to a downgrage from financial services firm BTIG who cut their rating to "sell" with a price target of $90.
In their note BTIG says, "It is important to note that we believe that if Star Wars Episode VII does not exceed $2 billion in worldwide box office revenue, Disney will miss our FY2016 and consensus earnings estimates as well."
The firm said it expects Disney's earnings per share growth to "slow dramatically and miss Street consensus expectations in 2017 and 2018." The current multiple is unwarranted, BTIG said.