Wells says Disney investors wanting Hulu sale could be disappointed

Wells Fargo says Disney (DIS) is unlikely to sell Hulu, despite press reports and investors saying otherwise. There are questions on whether it should happen, but even more material is there is a lack of buyers, the analyst tells investors in a research note. While Disney CEO Bob Iger has said all options are on the table, and recent reports suggest he has been advised to sell Hulu, "it takes two to tango," and Disney’s options to shed the asset are limited, contends the firm. Wells notes Comcast (CMCSA), believed by most investors to be the most likely buyer, has a 2024 put on its Hulu stake that is currently worth $9B. It is more likely that Comcast exercises that and pursues other deals, contends the analyst. Wells thinks investor expectations for Disney selling Hulu "have run too far too fast." Investors counting on a Hulu divestiture could be disappointed, it writes, while keeping an Overweight rating on Disney with a $141 price target.