Shares of Disney slid -1.6% Monday, following a rating downgrade by Imperial Capital.
In November, Imperial analyst David Miller assigned an outperform rating on Disney. Its shares have rallied around +26% since then.
And now, analysts at Imperial Capital have lowered their rating on the mass media/entertainment giant's stock to in-line from outperform, as they now feel that its valuation could have gotten too expensive. However, the analysts have maintained their price target of $147 on the stock.
According to Miller, near-term tailwinds like the release of the movie "Avengers: Endgame," the opening of two Star Wars theme parks, and the refinancing of various debts from the company's purchase of 21st Century Fox assets have been already priced into the stock.
Miller further thinks that Disney’s share buybacks could resume in a year.