In a report released today, Doug Creutz from TD Cowen maintained a Buy rating on Warner Bros (WBD – Research Report), with a price target of $14.00.
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Doug Creutz has given his Buy rating due to a combination of factors that suggest potential growth for Warner Bros. Despite the company’s first-quarter revenue falling short of expectations, their EBITDA slightly exceeded estimates, driven by better-than-anticipated performance in Networks and Direct-to-Consumer (DTC) segments. The subscriber additions in DTC also surpassed predictions, and management has maintained their positive outlook for fiscal year 2025 and beyond.
Creutz notes that while the company’s revenue was impacted by higher corporate eliminations, the Networks segment outperformed in advertising and content revenue. Although there were declines in distribution and advertising revenue, these were better than expected. The DTC segment showed an 8% year-over-year revenue increase, and management has ambitious subscriber growth targets and market expansion plans. These factors, along with reiterated long-term goals and a focus on expanding into new markets, support the Buy rating.
In another report released today, Barrington also maintained a Buy rating on the stock with a $16.00 price target.