CNBC Pro

BMO downgrades Disney on valuation, likes Netflix better now

Cars drive past a sign featuring Mickey Mouse at the entrance to Walt Disney World on the day that portions of the theme park, including the Magic Kingdom, reopened to guests after being closed since mid-March due the coronavirus pandemic.
Paul Hennessy | SOPA Images | Getty Images

(This story is for CNBC PRO subscribers only).

The rally for Disney has gone far enough, even with a vaccine set to help the company's "reopening" businesses, according to BMO Capital Markets.

The firm downgraded the stock to market perform from outperform on Monday, saying in a note to clients that the valuation was stretched and that streaming rival Netflix should be more attractive for investors.

More In Street Calls

CNBC ProBofA upgrades Alliant Energy to buy, saying it will benefit from climate bill
CNBC ProHere are Friday's biggest analyst calls: Rivian, Oracle, Teladoc, Bed Bath & Beyond, Walmart & more
CNBC ProDA Davidson says Teladoc shares are a buy here after nearly 90% rout