Other reasons for BTIG's downgrade include how much the network paid for its sports rights for its ESPN channels.
The note read: "Disney management made a fundamental mistake by overpaying for sports rights based on overly aggressive multichannel video subscriber projections. Not only did Disney overpay for individual sports rights packages, they also acquired too many sports rights in an effort to prevent new competitors such as Fox Sports 1 and NBC Sports from growing stronger."
The result according to BTIG: "Disney's cable network profitability will meaningfully underperform investor expectations."
But not everyone agrees. Pyykkonen said although he understands BTIG's point about ESPN, those challenges are already reflected in the stock.
"Yeah I think ESPN is challenged. I think it's got a margin challenge in a lot of different ways, so I get that point, but, it's missing the fact of the portfolio of assets not only this film and the studio," he said. "And I think if you look at it that way, I'm still at a buy and still a $130 price target."
Pyykkonen said that he would not downgrade Disney stock and he thinks "it will outperform the S&P."