Street Calls of the Week
Investing.com - Warner Bros. Discovery (NASDAQ:WBD) stock received a price target increase from Benchmark to $25.00 from $18.00, with the firm maintaining its Buy rating. The stock, currently trading at $20.75, is near its 52-week high of $20.24 and has delivered an impressive 141.57% return over the past year, according to InvestingPro data.
The price target adjustment follows news that Warner Bros. Discovery’s board has initiated a strategic review while still expressing confidence that a planned split would optimize long-term value for current shareholders.
According to Benchmark, the company has received unsolicited bids from multiple parties for the entire business, as well as offers specifically targeting the Warner Bros. studio operations.
While linear cable networks remain challenged across the media industry, including Discovery’s global channels, Benchmark notes these challenges are now "amply offset" by improved performance at Warner Bros. Studio and HBO Max, which have achieved significant creative, operational, and financial improvements.
Warner Bros. currently holds the #1 position in year-to-date box office share at 27.4%, with substantial profitability across various genres, while CEO David Zaslav has expressed confidence in reaching 150 million streaming subscribers next year, primarily through HBO Max.
In other recent news, Warner Bros. Discovery is at the center of significant developments. Reports indicate that Skydance Media’s David Ellison is in discussions with private equity firms, including Apollo Global Management, regarding a potential $60 billion bid for the company. Additionally, Paramount Skydance is reportedly preparing a bid that could range between $22 and $24 per share. Meanwhile, Guggenheim has raised its price target for Warner Bros. Discovery to $22, citing strong content-driven performance in Studios and Streaming, although they have adjusted their fourth-quarter outlook downward. CFRA has also increased its price target to $21, maintaining a Hold rating, and bases its valuation on a forward TEV/EBITDA of 9.4x for 2026. Furthermore, Bernstein has raised its price target to $16, emphasizing Warner Bros. Discovery’s critical role as a content provider. These developments reflect a dynamic period for the company, with potential bids and analyst revisions shaping investor perspectives.
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