Disney Stock Continues to Slide as Morgan Stanley Lowers Its Price Target

Bob Iger and the Walt Disney Company board of directors received unwelcome news today when Morgan Stanley lowered its price target on Disney stock from $130 to $110.

On a day that saw the Dow fall 1,000 points and the S&P 500 post its worst day since 2022, Disney stock continued to struggle, dropping nearly 2%. By the time the market closed, Disney was trading at $87.79.

Photo: Disney

During mid-day trading, the news that Morgan Stanley was lowering its target also hit. The financial institution currently has an overweight rating on Disney stock.

Disney Was Riding High in April

Just three months ago, Bob Iger and Disney were riding high as the company’s stock was trading at over $123. Since that time, however, the stock has continued to slide. It is now down nearly 39% from its 52-week high on April 2.

Two weeks ago, longtime Iger antagonist and former president of Marvel Ike Perlmutter revealed that he had sold his $25.6 million shares of Disney between early April and mid-July for an average price of just under $115.

Source: AP

At the time, the Wall Street Journal reported that if Disney shares plummeted into the $65 to $75 range, Perlmutter would repurchase much of his position. 

Analysts Have Been Bullish on Disney

Despite the company’s recent stock struggles. analysts have been largely bullish on Disney’s future. Over the last three months, Goldman Sachs and Moffett Nathanson gave Disney a “buy” rating, while Evercore ISI set an “outperform” rating.

NBC News

Today’s news and stock market sell-off come at a particularly bad time for Disney, as the company is set to report its Q3 earnings on Wednesday morning. While Iger seemingly no longer has to worry about Nelson Peltz looming over the company, investors are going to want answers for Disney’s recent slide.