Warner Bros. downgraded to Neutral from Buy at Rothschild & Co Redburn

Rothschild & Co Redburn downgraded Warner Bros. Discovery (WBD) to Neutral from Buy with a price target of $31, up from $28. The firm believes Netflix (NFLX) is the most likely winner of Warner Bros. and that there will not be materially higher bids coming out of Paramount (PSKY). As such, “now is the right time to downgrade WBD to Neutral,” the analyst tells investors in a research note. Rothschild says Netflix has bid $27.75 in cash per share to acquire the Warner Bros. studio and HBO streaming business. It estimates the remaining Discovery Global unit will be worth $2.80 per Warner share for a total value of $30.55