Analyst Doug Creutz from TD Cowen maintained a Buy rating on Warner Bros and keeping the price target at $14.00.
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Doug Creutz’s rating is based on Warner Bros’ strong performance in the second quarter of 2025, which exceeded both his and consensus estimates. The company’s Networks and Direct-to-Consumer (DTC) segments were key drivers of this success, with DTC subscriber additions slightly surpassing expectations. Additionally, Warner Bros’ adjusted EBITDA was notably higher than anticipated, indicating efficient cost management and revenue growth.
Despite some revenue challenges, particularly in distribution and advertising, the company’s overall financial health remains robust. The strong box office performances of films like ‘A Minecraft Movie’ and ‘Final Destination: Bloodlines’ contributed to the Studios segment’s revenue exceeding projections. Furthermore, management’s reaffirmation of their future outlook, including ambitious subscriber growth targets and international expansion plans, supports the Buy rating.
In another report released yesterday, Benchmark Co. also reiterated a Buy rating on the stock with a $18.00 price target.