Analyst Patrick Sholl from Barrington reiterated a Buy rating on Warner Bros (WBD – Research Report) and keeping the price target at $16.00.
Patrick Sholl has given his Buy rating due to a combination of factors that highlight Warner Bros. Discovery’s strategic progress and financial outlook. The company has made significant advancements in its direct-to-consumer (DTC) segment, with expectations of doubling its EBITDA profits in 2025 compared to 2024. This growth is supported by successful bundling strategies and market expansions, which are expected to enhance subscriber growth and improve margins over time.
Additionally, Warner Bros. Discovery has been actively working on reducing its debt levels, with a target leverage range of 2.5-3.0x. Although progress has been slower than anticipated due to softer advertising revenues, the company has managed to reduce its debt by $19 billion since a major transaction. The ongoing corporate reorganization aims to enhance flexibility and unlock further value, while robust cash flows are expected to support a sustainable financial position. These factors contribute to a positive outlook, justifying the Buy rating with a price target of $16, indicating a 72% upside potential.
According to TipRanks, Sholl is an analyst with an average return of -2.7% and a 40.54% success rate. Sholl covers the Communication Services sector, focusing on stocks such as IMAX, Marcus, and Warner Bros.
In another report released on February 28, Bank of America Securities also reiterated a Buy rating on the stock with a $14.00 price target.
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