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Disney Named Top Large-Cap Growth Idea At Wells Fargo -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Walt Disney Company (NYSE 🙂 shares rose 0.4% Tuesday after it was named Wells Fargo’s “favorite large-cap growth idea for 2022.”

Steven Cahall, Wells Fargo Analyst, reiterated his overweight rating for the shares and increased the price target to $196.

The analyst stated that Disney faces “serious content challenges” in FY24 subscribers guidance. However, he is optimistic about the company’s ability to fulfill expectations.

“Given DIS’s history in delivering the content goods, we think it’s an attractive setup, so it’s our favorite large-cap growth idea for 2022,” explained Cahall in a client note.

Cahall stated that Netflix’s (NASDAQ:) content amortization of $2 billion and more is equal to 25 million historical net additions. 

“DIS’s content growth suggests that the amortization of the company will not be as rapid. We can’t estimate the value of content going to entertainment (GE), but we remind investors that DIS purchased 21st Century Fox to improve its content creation skills. The analyst stated that DIS is aware of its strengths and will throw everything at it.

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