Schaeffer's Street Stories: The Walt Disney Company Plummets on Brokerage Downgrade

CINCINNATI--(Business Wire)--
The Walt Disney Company (NYSE: DIS) has been smacked lower this morning by a
downgrade at Goldman Sachs from "buy" to "neutral." Analyst Mark Wienkes said
the company's shares are now valued at a 25% premium to its entertainment peers
- a gap Wienkes expects to narrow. He cut his 6-month price target to $20 from
$26. The analyst expects "tepid" box office results for Disney films in fiscal
2009 to have an effect on the stock, as the market is "looking to award value
only for near-term results." On a longer-term basis, Wienkes says the stock
should outperform due to its strong brands, smart execution across multiple
platforms, and other factors.

The security is trading down 4% this morning following the downgrade and is
currently sitting on a year-to-date loss of more than 23%. The equity has
recently rebounded off its March 10 low of $15.14, resulting in a gain of
approximately 25% as it climbed above its 10-day and 20-day moving averages.
These trendlines had served as a layer of staunch resistance from Jan. 8 through
March 11.

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Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
jdrake@sir-inc.com

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