Now is not the time to buy Disney , according to CFRA. The firm downgraded the stock to a hold from a buy rating, saying in a note to clients that hit the Street during the trading day Tuesday that the lack thereof a cash dividend leaves all of investors’ hopes hanging on its streaming growth plan. “DIS does not pay a cash dividend nor has the company repurchased common stock since 2018,” CFRA said. “We think this puts added pressure on successful execution of Disney+, its video streaming plan, which requires significant capital.” Disney last paid a dividend in 2019. Along with the downgrade, CFRA lowered earnings per share estimates on the stock — which has fallen more than 36% this year on recession fears — for the fiscal year 2022. CFRA also believes that Disney faces ongoing uncertainty within its parks business amid Covid-19 outbreaks in Asia and expects attendance to weaken next year as a recession hits. Disney shares were up by 3% Tuesday amid a broader comeback in the stock market. The company reports earnings on August 10. — CNBC’s Michael Bloom contributed reporting
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