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

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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.