Analysts remain bullish on Walt Disney following CEO interview By Investing.com

BofA and Wells Fargo remain bullish on Walt Disney (NYSE:) after the entertainment company’s said in an interview on CNBC Thursday that the company may consider a divestiture of non-core linear nets, excluding ESPN.

BofA analysts told investors in a note that Iger indicated in the expansive interview that Disney will go through a major transformation.

“All assets and strategic goals are under review. Indeed, the level of change within the industry and, therefore, for Disney is so extensive that Mr. Iger will stay as CEO for an additional two years,” the analysts said, reiterating a Buy rating and $135 price target on the stock.

“There are several permutations of how this transformation can be executed, but ultimately, we are encouraged as: 1) DIS has best-in-class brands (e.g. ESPN in sports) and 2) a very strong executive team, led by Bob Iger at the helm, which gives us confidence that the company can make these actions from a position of strength to create long term value,” they added.

Wells Fargo analysts maintained a $147 price target on the Overweight-rated DIS, which is also one of the firm’s signature picks.

“As strong (but wrong) DIS bulls we like the potential action of divesting non-core Linear assets, which would improve the growth and multiple. We est. 10% potential accretion. Bigger picture is DIS seems to be taking increasingly bold actions,” they wrote.