Entertainment giant The Walt Disney Company ( DIS ) caught a big downgrade on Tuesday from analysts at Bank of America/Merrill Lynch.
The firm said it cut its rating on DIS from "Buy" to "Neutral" with a $42 price target, suggesting a 25% upside to the stock's Monday closing price of $33.65.
Bank of America/Merrill Lynch noted that the entertainment sector still hasn't priced in the possibility of a potential double-dip recession.
Disney shares fell 85 cents, or -2.5%, in premarket trading Tuesday.
The Bottom Line
Shares of Walt Disney ( DIS ) have a 1.19% dividend yield, based on last night's closing stock price of $33.61. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
The Walt Disney Company ( DIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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