Research firm MoffettNathanson published an analyst note Tuesday that gives a grim overview of how the coronavirus pandemic will hurt the Walt Disney Company. Disney did not immediately respond to comment Wednesday.
“We expect the closure to extend for another two weeks into April as the country scrambles to get this virus contained,” the analyst note said of Disney.
Meanwhile, Disney stock, which traded last year at more than $150 per share at one point, has fallen steeply. It’s currently trading at about $85 per share, down 8%.
“Putting it all together, despite the fall in Disney’s stock price to date, we think the combination of COVID-19 impacts and an ensuing recession will cause unprecedented pain here,” the note said. “Making matters worse, Disney has taken on a more than average amount of debt to acquire Fox and has entered a period of lower cash flow generation due to their pivot into” streaming services.