Warner Bros. Discovery stock rating reiterated at Buy by Benchmark

Investing.com - Benchmark maintained its Buy rating and $18.00 price target on Warner Bros. Discovery (NASDAQ:WBD), which has surged 68% over the past year and currently trades at $12.95, ahead of the company’s second-quarter 2025 earnings report scheduled for Thursday morning.

The firm identified Warner Bros. Discovery as a "Benchmark Best Idea" while anticipating "satisfactory" Q2 results from the media company. Benchmark noted expectations for "much improved Streaming & Studios momentum" that contrasts with "continued Global Linear Networks challenges."

The analyst report highlighted that market participants will be particularly focused on any early insights management might provide regarding financial engineering plans for the company.

Investors are also expected to pay close attention to details about strategic and creative positioning for the new Warner Bros. and Discovery Global entities.

These separate public entities are scheduled to be established by mid-2026, according to the timeline referenced in Benchmark’s analysis.

In other recent news, Warner Bros. Discovery has received a positive outlook from KeyBanc, which raised its price target for the company to $18.00, citing a promising second-quarter performance. The investment firm anticipates that Warner Bros. Discovery will surpass expectations in total revenue and adjusted EBITDA, with notable potential in its Studios and Direct-to-Consumer segments. In a significant corporate development, Warner Bros. Discovery announced the appointment of Fraser Woodford as Chief Financial Officer and Brian Rauch as Chief Accounting Officer, contingent upon the company’s planned separation into two entities: Warner Bros. and Discovery Global. This separation, expected in mid-2026, will divide the company into a streaming and studios business under the Warner Bros. name and a television networks division called Discovery Global.

Furthermore, Warner Bros. Discovery has expanded its partnership with VideoAmp through a multi-year agreement, enhancing currency measurement options for advertisers across various platforms. This deal will aid in planning and transactions for the 2025 Upfront season and beyond, supporting audience guarantees across the company’s content portfolio. Benchmark has reiterated its Buy rating for Warner Bros. Discovery, maintaining an $18.00 price target, following the successful debut of the new Superman movie. The film achieved a $122 million box office in North America and $217 million globally during its opening weekend.

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