BofA Securities reiterates Buy rating on Warner Bros Discovery stock

Published 21/10/2025, 19:32
BofA Securities reiterates Buy rating on Warner Bros Discovery stock

Investing.com - BofA Securities has reiterated its Buy rating and $24.00 price target on Warner Bros Discovery (NASDAQ:WBD) stock, maintaining its positive outlook on the media giant.

The firm believes that following a potential split, standalone Warner Bros would likely not remain independent for long, suggesting the company may initiate an auction process to maximize shareholder value.

BofA Securities views Warner Bros as "an extremely attractive potential acquisition target" due to its valuable intellectual property portfolio, which includes major franchises like Harry Potter, DC, Lord of the Rings, and Game of Thrones.

The firm estimates that in a takeout scenario, the consolidated WBD entity could be worth approximately $30 per share, with Warner Bros accounting for about $26 per share and Discovery Global representing roughly $4+ of value.

This valuation assumes a 20x EV/EBITDA multiple for Warner Bros’ Streaming & Studios assets and approximately 5x for Discovery Global, compared to BofA’s current price objective of $24 based on existing industry multiples of approximately 10x CY26E EBITDA.

In other recent news, Comcast Corporation has completed its private exchange and cash offers, issuing $480 million in new notes due in 2037, with an interest rate of 5.168% per year. These new notes replace existing notes due in 2028 and 2029, as detailed in a filing with the U.S. Securities and Exchange Commission. Benchmark has reiterated its Buy rating on Comcast, maintaining a price target of $48.00, with expectations for performance improvements in the Connectivity & Platforms segment by the second half of 2026. Comcast has also expanded its Cisco Meraki platform to cater to smaller enterprises, enhancing its secure networking solutions across the U.S. Additionally, Comcast opened a new Flagship Lift Zone in Philadelphia, investing over $1 million to support digital skills and job training. This facility aims to provide free high-speed WiFi and training in various fields such as hospitality and healthcare. Lastly, Roku and FreeWheel have expanded their partnership to improve the streaming ad ecosystem, enhancing targeting and monetization capabilities.

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