Analyst Laurent Yoon from Bernstein maintained a Hold rating on Warner Bros (WBD – Research Report) and increased the price target to $11.00 from $9.00.
Laurent Yoon has given his Hold rating due to a combination of factors affecting Warner Bros. The company has faced a challenging year, particularly with the loss of NBA rights and underwhelming theatrical releases. However, the outlook for 2025 appears more promising, with expectations of higher revenue and EBITDA from the Studios segment, driven by an improved content slate.
Despite growth in domestic subscribers due to a new deal, both domestic and international ARPU fell short of expectations. The company is focusing on international expansion, with plans to launch Max in several countries over the next two years. While the Studios segment is expected to see a turnaround, the Networks division faces challenges, including declining advertising revenue and increased costs from new sports rights. These mixed factors contribute to maintaining a Hold rating, with a price target adjusted to $11.
Yoon covers the Communication Services sector, focusing on stocks such as AT&T, Comcast, and Verizon. According to TipRanks, Yoon has an average return of 6.8% and a 68.18% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com