BMO Capital lowered its rating for Disney to underperform from market perform, because it says the company's earnings will miss Wall Street expectations this year.
"We believe the risk/reward skews negatively and continue to see more negative data points than positive ones for ESPN, which we believe will remain the dominant theme for the stock," analyst Daniel Salmon wrote in a note to clients Wednesday.
"Moreover, we believe it is still too early to own the stock for the F2018 film slate. ... We see more risk than opportunity in estimates for the studio segment," he added.
BMO's call is in direct contrast to Goldman Sachs' upgrade of Disney to buy on Tuesday, which was bullish on the company's upcoming films.