Pali Research Cuts Disney (DIS) To Neutral, Citing Valuation Gap

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Pali Research took the bold step of downgrading the Mouse House, The Walt Disney Company (DIS), to neutral saying the valuation gap with its large cap media peers cannot be ignored.

Pali notes that Disney trades at 13.1x their 2009 estimates, versus 8x for Viacom (VIA.b), 9x for News Corp (NWS.a). Pali said Disney deserve a premium given its superior asset mix, but they can no longer rate the stock a Buy.

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