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Investing.com - Bernstein SocGen Group has raised its price target on Warner Brothers Discovery (NASDAQ:WBD) stock to $16.00 from $13.00 while maintaining a Market Perform rating. The stock, currently trading at $19.50 and near its 52-week high of $19.59, has delivered an impressive 134.59% return over the past year. According to InvestingPro, analyst targets for WBD range from $10 to $24.
The firm views WBD as a critical content provider for potential buyers, particularly highlighting its importance to PSKY, which Bernstein believes would struggle as a standalone entity without access to WBD’s content volume and quality.
Bernstein estimates potential run-rate cost synergies of $1.1 to $1.6 billion within S&S alone, which could translate to an additional $4 to $5 per share in value, suggesting a potential valuation of $20 to $25 per share based solely on these synergies.
The research firm notes that WBD is no longer in a "dire situation to sell" and has options, which strengthens its negotiating position in any potential acquisition talks.
Bernstein cautions that if no deal materializes in the near term, the stock may surrender some recent gains and remain volatile, though the firm believes WBD will "eventually be acquired" and could trade at a premium in anticipation of that outcome.
In other recent news, Warner Bros. Discovery is at the center of significant developments involving potential mergers and analyst ratings. Paramount Skydance is reportedly preparing a bid for Warner Bros. Discovery, with a possible offer ranging between $22 and $24 per share, according to CNBC. This potential merger has drawn criticism from Senator Elizabeth Warren, who expressed concerns about media consolidation, calling for the deal to be blocked.
Analyst reactions to these developments have been mixed. TD Cowen downgraded Warner Bros. Discovery from Buy to Hold, citing concerns about the stock’s risk-reward profile amid acquisition rumors. In contrast, Benchmark has maintained its Buy rating and a price target of $18.00, reiterating the stock as a "Best Idea." These recent reports have kept Warner Bros. Discovery in the spotlight as investors watch for further updates. Additionally, Turkey’s broadcast watchdog has fined major streaming platforms, including Warner Bros. Discovery’s HBO Max, for allegedly violating national and moral values.
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