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Pro Analysis

Top analyst downgrades Disney on rising NBA costs

Bob Iger, chairman and CEO of The Walt Disney Co.
Adam Jeffery | CNBC
Bob Iger, chairman and CEO of The Walt Disney Co.

Drexel Hamilton's Tony Wible, one of Wall Street's top analysts, lowered his rating on Disney to hold from buy, citing the stock's full valuation and rising fees from NBA sports content.

"[Disney] will soon face a massive increase in NBA costs as the new season and deal terms take effect in October," Wible wrote in a note to clients Monday.

"Our analysis of prior renewals leads us to believe the initial step up could be larger than anticipated."

Wible's picks have a 16.8 percent one-year average return with a 66 percent success rate, according to analyst ranking service TipRanks, placing him in the top 3 percent of all Wall Street analysts covering any industry.