Street Calls of the Week
Investing.com - Wells Fargo raised its price target on Warner Brothers Discovery (NASDAQ:WBD) to $14.00 from $13.00 on Thursday, while maintaining an Equal Weight rating on the stock. The media giant’s shares, currently trading at $13.04, have surged over 80% in the past year according to InvestingPro data.
The price target adjustment reflects Wells Fargo’s view that Warner Brothers Discovery’s Studios and Networks segment could be an attractive merger and acquisition candidate.
The firm noted that its analysis of potential buyers suggests a potentially higher valuation for the company, with a "blue sky" scenario potentially exceeding $20 per share.
Wells Fargo specifically identified Netflix as "the most compelling buyer" for Warner Brothers Discovery assets.
The firm also indicated that Netflix investors would likely support such a potential acquisition deal, though the Equal Weight rating on Warner Brothers Discovery stock remains unchanged.
In other recent news, Warner Bros. Discovery reported its Q2 2025 earnings, showcasing a revenue of $9.81 billion, which surpassed the forecast of $9.73 billion. Despite this revenue success, the company missed on earnings per share (EPS), reporting $0.63 compared to the forecasted $0.25, resulting in a significant surprise of -352%. CFRA has raised its price target for Warner Bros. Discovery from $13 to $14, maintaining a Hold rating. This adjustment comes as the company plans a corporate restructuring into two separate entities in 2026, which CFRA views as a positive move for shareholder value. Meanwhile, Nielsen’s latest C3 ratings data indicates a 54% year-over-year decline in broadcast primetime viewership for Q3 2025. Cable network primetime ratings also fell 28% year-over-year during the same period. These developments reflect ongoing changes and challenges in the media landscape.
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