SA analyst upgrades/downgrades: DIS, COP, GLW, AXON

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Torsten Asmus

Howard Jay Klein questions Disney’s (DIS [https://seekingalpha.com/symbol/DIS]) acquisition of NFL media properties but maintains a Buy rating based on the company’s creative strength, while The Value Portfolio upgrades ConocoPhillips (COP [https://seekingalpha.com/symbol/COP]) citing strong free cash flow forecasts and successful integration efforts. On the downside, analysts have expressed caution about current valuations for high-growth companies, with Star Investments downgrading Axon Enterprise (AXON [https://seekingalpha.com/symbol/AXON]) despite its market leadership position and Gen Alpha taking a more conservative stance on Corning (GLW [https://seekingalpha.com/symbol/GLW]) following its recent price appreciation.

UPGRADES

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Disney (DIS [https://seekingalpha.com/symbol/DIS]): Upgrade to Buy by Howard Jay Klein [https://seekingalpha.com/article/4814371-disney-nfl-media-buy-an-overreach-move-on-excessive-sports-content]. Despite skepticism about Disney’s NFL media acquisition, the analyst sees stronger value in the company’s core creative properties rather than its sports content expansion.

> _“Disney’s investment in sports with its NFL Network buy is questionable given the existing proliferation of sports content through so many services… When Disney’s strength and imagination are there to execute good material, the result brings good odds for success. When management veers to even related fields, that seem logical brand extension efforts, they mostly fail.”_

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ConocoPhillips (COP [https://seekingalpha.com/symbol/COP]): Upgrade by The Value Portfolio [https://seekingalpha.com/article/4814308-conocophillips-knife-done-falling]. The analyst reverses a previous overvaluation call, now highlighting strong FCF growth forecasts and successful Marathon Oil integration as key drivers for future value creation.

> _“The company expects overall >$7 billion in incremental FCF by 2029, effectively doubling the company’s $7 billion in 2025 expected FCF. This is expected to come from a number of cash reductions and margin enhancements, along with new projects the company is bringing online… That makes the company a valuable investment.”_

DOWNGRADES

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Axon Enterprise (AXON [https://seekingalpha.com/symbol/AXON]): Downgrade to Hold by Star Investments [https://seekingalpha.com/article/4814232-axon-enterprise-current-valuation-signals-caution-reasons-to-hold]. Despite the company’s strong quarterly performance and long-term growth potential, current valuation metrics signal significant risk at present levels.

> _“The company's potentially volatile revenue recognition, combined with a very high valuation, increases the risk of a revenue miss causing a significant sell-off in the short term. Value investors or people with an investing time horizon of less than a year should avoid investing in Axon at the current valuation. Even long-term investors with an interest in the stock likely can find better entry points over the next year.”_

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Corning Incorporated (GLW [https://seekingalpha.com/symbol/GLW]): Downgrade to Hold by Gen Alpha [https://seekingalpha.com/article/4814047-corning-finally-gets-tech-like-valuation]. Following a 27% rise in stock price since the analyst’s previous coverage, GLW now carries a sizable forward PE of 26.6, well above its historical average.

> _“While GLW has a lot going for it, my main qualm with the stock revolves around its valuation. At the current price of $65.76, GLW carries a sizable forward PE of 26.6. As such, I see much of the near-term alpha as already having been realized with the stock being fully valued… I believe this price would better qualify GLW as a GARP (growth at a reasonable price) stock.”_

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