( This story is for CNBC Pro subscribers onl y). Wall Street analysts continued to pull their support for Disney on Tuesday as the coronavirus pandemic hits multiple parts of the entertainment giant's business strategy at once. LightShed's Richard Greenfield downgraded the stock to sell from neutral and set an $85 per share target for the stock. The target is more than 17% below where trading closed on Monday. "The more we have learned in the past few weeks and thought about how we modeled 2021, we believe our estimates were still far too aggressive," Greenfield said in the note. The firm is the latest to back away from the entertainment stock, which is set to report its fiscal second quarter results after the bell on Tuesday. MoffettNathanson downgraded Disney on Monday , while UBS and Credit Suisse did so last month. The economic shutdowns due to the virus have hurt nearly every line of Disney's empire. The company has had to shut its theme parks and delay movie releases, while a weakening advertising market and a lack of live sports hurts its cable business. The belt-tightening that Disney does during the time will hurt its long-term growth, Greenfield argued. "We believe Disney will be forced to cut back on strategic investments and substantially reduce costs, just as investors were hoping they would increase investment to take advantage of their successful pivot to streaming," Greenfield said. Greenfield has a dim view of Disney's streaming services as they currently stand, saying that it's hard to see how Disney+ raises its revenue per user and calling ESPN+ a "money losing placeholder." Shares of Disney have not rebounded over the past six weeks like much of the broader market has, and the stock is still down more than 28% for the year. Longtime CEO Bob Iger announced on Feb. 25 that he would step down from that role and hand the reigns to Bob Chapek, who had previously run the company's parks division. — CNBC's Michael Bloom contributed to this story.
A view outside the Disney store in Times Square on March 22, 2020 in New York City.
Wall Street analysts continued to pull their support for Disney on Tuesday as the coronavirus pandemic hits multiple parts of the entertainment giant's business strategy at once.
