Disney: shares dip after UBS downgrade

(CercleFinance.com) - Disney shares were down over 3% on Monday, making them one of the biggest fallers in the Dow Jones blue chip index, after UBS downgraded the US entertainment giant from "buy" to "neutral," while cutting its target price from 162 dollars to 114 dollars.


The broker believes Disney park division's profitability will be impaired "for a longer period of time," given the effects of the Covid-19 outbreak, with it now assuming that the park will be the re-opened on 1 January 2021, which it takes as its base case.

"The economic recession plus the need for social distancing, new health precautions, the lack of travel and crowd aversion are likely to make this business less profitable until there is a widely available vaccine," analysts say in a note.

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