Connect with us

Hi, what are you looking for?


Disney shares could rally up to 45% in 2023: Wells Fargo

disney shares could rally 45% in 2023

Walt Disney Co (NYSE: DIS) is trading slightly up on Tuesday after a Wells Fargo analyst issued a bullish note in favour of the entertainment and media conglomerate.

Disney shares could rally on an ESPN spin-off

Steve Cahall recommends buying Disney shares at current levels and sees upside in the stock to $125 – about a 45% price increase from here.

He’s bullish because he’s convinced that the Walt Disney Co will spin-off ESPN and ABC by late 2023.

Disney is a franchise IP company with a monetisation flywheel. Sports is a distribution business where value accrues to leagues. There’s very little reason for Disney and ESPN to remain together given evolution of media consumption.

Earlier this year, activist investor Dan Loeb had also pushed for Disney to spin-off ESPN, arguing the latter will have more flexibility to expand in the likes of sports betting if it weren’t a part of Disney.

Cahall is betting on the return of Bob Iger as CEO

Now that Bob Iger is back at the helm, Cahall even expects the mass media company to consider selling its stake in Hulu to improve its balance sheet.

According to the Wells Fargo analyst, spinning off ESPN will see the remaining Disney trading at an enterprise value-to-EBITDA multiple of 16 times. His note reads:

Recall that Iger built Disney into what it is today: a franchise [intellectual property] leader with global scale. ESPN, traditionally the cash cow, is neither owned-IP nor global the way the rest of Disney is.

Another notable bull on Disney shares, as Invezz reported here, is Jim Cramer. For the year, this stock is down about 45% at writing.

The post Disney shares could rally up to 45% in 2023: Wells Fargo appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Genesis Trading, the cryptocurrency brokerage and lender that halted customer withdrawals in the aftermath of FTX collapse, believes it can sort out its financial...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023