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Disney (DIS) Stock Down on Wells Fargo Downgrade, Cautious on Cable Networks

NEW YORK (TheStreet) -- Shares of The Walt Disney Co. (DIS - Get Report) are down 0.65% to $108.34 in pre-market trading this morning after Wells Fargo downgraded the media company to "market perform" from "outperform" and reduced its valuation range to $112-$119.

A lack of visibility combined with negative sentiment on cable networks, which is still 50% of Disney's consolidated operating income, led Wells Fargo analysts to be "a little more cautious for now."

"We LOVE Disney as a company -- our kids LOVE Disney as a company -- and we do not think that ESPN is 'broken' as some have suggested. Yes, it's slowed -- which is important given that ESPN used to be a significant portion of this company's consolidated operating income -- but it really isn't broken," a team of Wells Fargo analysts wrote in a note.

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"That all said, we are, quite frankly, having a tough time getting our numbers to justify an 'outperform' rating. While we did take our 2016 estimates higher -- primarily in Studio where we admittedly didn't give Disney enough credit for the strong schedule outside of Star Wars (i.e. Captain America: Civil War, Alice Through...