Wells Fargo: Buy WWE Now, We 'STILL' Don't Think Investors Are Giving It Enough Credit

World Wrestling Entertainment, Inc. (NYSE: WWE) opened Wednesday's trading up more than 3 percent after Wells Fargo initiated the stock with an Outperform rating and a price target range of $22 to $24.

Analysts led by Eric Katz noted they "really like" the stock's current valuation and see "substantial upside" going forward. Wells Fargo's bear case for the company notes 14 percent downside if the WWE Network maintains break-even subscriber numbers of 1 million. If, however, WWE can hit 3 million to 4 million in subscribers, Katz's discounted cash flow valuation indicates a share value of $37 to $52.

That's upside between 137 percent and 236 percent.

It doesn't mean there aren't concerns, though.

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"WWE also happens to be one of the more controversial stocks in the media space in our view, as it decided to blow up its successful PPV business model and become the first content company to launch an OTT streaming service [WWE Network]...there were two big milestones that missed investor expectations causing the stock to drop by more than half since the launch," he wrote.

While sentiment has improved, Wells Fargo said it "STILL" (in all caps) believes investors aren't giving WWE enough credit when it comes to growth potential.

Fourteen percent downside versus a possibility shares could triple? It's understandable why retail investors are bullish after Katz's outlook.

WWE currently trades near $15.69, off its 52-week high of $17.91.