UPDATE: Goldman Sachs Downgrades Disney on Risk Factors

In a report published Thursday, Goldman Sachs analyst Drew Borst downgraded the rating on Disney DIS from Conviction List-Buy to Neutral, but reiterated the $70.00 price target.

In the report, Goldman Sachs noted, “We remove DIS from the CL Buy List and downgrade to Neutral due to limited upside to our target price relative to other stocks in our coverage. Our estimates and 12-month price target of $70 are unchanged. In addition, we believe two issues will overhang DIS, and specifically its largest asset, ESPN: 1) New competition from Fox Sports 1 that launches this August; and 2) Slower Cable Network segment OI growth, due to cost step-ups on new sports rights deals starting in 2014. Since we added DIS to the CL Buy List on 2/27/2012 shares have risen 55% vs. the S&P up 19%. Over the past 12 months the shares are up 35% vs. a gain of 20% for the S&P.”

Disney closed on Wednesday at $64.33.