Warner Bros. Discovery price target raised to $27.75 from $23.50 at Bernstein

Bernstein raised the firm’s price target on Warner Bros. Discovery (WBD) to $27.75 from $23.50 and keeps a Market Perform rating on the shares. The firm notes the company’s Q4 print is just around the corner, but its recent investor conversations have largely centered on the ongoing deal process and the “next move.” Bernstein does not anticipate WBD stock to move materially in either direction as a result of their Q4 print. However, if the management signals a steeper Linear decline – further eroding direct-to-consumer and Global segment value – Netflix (NFLX) would likely need to raise its bid to remain competitive, which the market is already pricing in, the firm argues.