Have Media Stocks “Nuked The Fridge”

Looks like the Disney story might not have a happy ending after all, at least according to Lehman analyst Anthony DiClemente. He downgraded shares of the Mouse House to "Underweight" from "Equal Weight" and cut the price target to $29 from $40.

The growth of digital content distribution poses a threat to Disney's film and TV divisions, while the company's theme parks could see weaker attendance, says DiClemente who compared the scenario to that faced by the music industry earlier in the decade.

"The structural shift created by ubiquitous technological change - a shift that has materially impacted the music industry - could also disrupt the core economic models of the film and television studios," DiClemente wrote in a note to investors.

“We’re taking a cautious view structurally on the movie and TV content business,” DiClemete tells Fast Money. “We just don’t think profitability 2-3 years from now is going to be as great.”

DiClemente also said although Disney's theme parks appear to have been insulated from the broader economic downturn so far, attendance may soon begin to decline as the price of flights to Orlando - home of its Walt Disney World parks - continue to rise amid airline capacity cuts.

* In case you’re wondering about the title of this post, “nuking the fridge” is an Indiana Jones reference citing an over-the-top scene from the last movie. Much like “jumping the shark” from Happy Days it suggests that the subject has passed its prime.

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Lehman Brothers And/Or Affiliate Has Received Inv. Bank. Comp. From (DIS), (TWX), CBS, Viacom, News Corp. In Past 12 Mos., Lehman Brothers Has Received Non-Inv. Bank. Compensation From (TWX), (CBS), (DIS) Within Last 12 Mos., (DIS), (TWX), (CBS), Viacom, News Corp. Are Or In Past 12 Mos. Have Been Inv. Bank. Clients Of Lehman Brothers And/Or Affiliate, (DIS), (CBS), (TWX) Are Or During Last 12 Mos. Have Been Non-Inv. Bank Clients (Securities Related Services) Of Lehman Brothers