Benzinga | Nov 22, 2021 11:09AM EST

Why Wells Fargo Prefers To Be An Aggressive Buyer Of Disney?

Wells Fargo analyst Steven Cahall slashed the price target on The Walt Disney Co (NYSE:DIS) to $196 from $203, implying a 28% upside, and reiterated an Overweight, citing the recent Disney+ subscriber slowdown.

* Based on his deep-dive analysis, the analyst believes the slowing content machine was the culprit.

* His cohort analysis of organic core net adds supports subscribers' reaccelerating with content amortization increasing.

* Disney+ is now at a $150 billion discount to Netflix Inc (NASDAQ:NFLX) based on his deconstruction, so he would be an aggressive buyer.

* Price Action: DIS shares traded lower by 0.46% at $153.29 on the last check Monday.