Warner Bros. Discovery upgraded to Buy at Argus on potential bidding war

As previously reported, Argus upgraded Warner Bros. Discovery (WBD) to Buy from Hold with a $27 price target. The stock had been climbing higher on rumors of bids from Paramount Skydance (PSKY), but a bidding war could drive bids even higher, the analyst tells investors in a research note. Argus adds that there’s logic in separating the growth-oriented streaming assets from the secularly declining but cash-flow producing channel assets, though a sale of the whole company could short-circuit the separation process.