Marvel Entertainment drops following downgrade

Drew Crum of Stifel Nicolaus & Co. said in a client note that Marvel's "Iron Man" film, which was the first that the company financed itself, should contribute to profitability over the next several quarters. A similar scenario is possible for "The Incredible Hulk" movie, set for release next Friday.

Looking toward next year, Crum is a bit more cautious, as "without any major event scheduled for 2009 the business may lack a catalyst and shares could get complacent."

The analyst lowered his rating to "Hold" from "Buy," but said he is more optimistic on the company's longer-term growth prospects.

Shares of Marvel Entertainment, which licenses comic book characters for films and consumer products, dropped $2.07, or 5.7 percent, to $33.99. Over the last year, the stock has traded in a range of $21.21 to $36.30.