Disney divestitures may be worth over $10 per share, says Wells Fargo

Wells Fargo analyst Steven Cahall keeps an Overweight rating on Disney with a $147 price target after CEO Bob Iger said on CNBC that the company may consider divestiture of non-core linear networks, excluding ESPN. The analyst likes the possibility of divestitures and estimates potential accretion of 10% or $10 per share. Bigger picture, Disney “seems to be taking increasingly bold actions,” the analyst tells investors in a research note. Wells says divesting non-core linear networks assets would bring in cash and improve Disney’s earnings growth. “Linear cash flows are in marked decline, but there’s a price for everything,” writes the firm.