In a report released today, Benjamin Swinburne from Morgan Stanley maintained a Hold rating on Warner Bros (WBD – Research Report), with a price target of $12.00.
Benjamin Swinburne has given his Hold rating due to a combination of factors impacting Warner Bros Discovery’s financial outlook. The company is in a transitional phase, focusing on expanding its streaming services while facing challenges in its traditional linear TV segment. Although there is confidence in the growth potential of the direct-to-consumer segment, which is expected to generate significant EBITDA in 2025, there are concerns about the declining cash flows from the Basic Networks segment.
Moreover, while the studio segment is anticipated to show healthy growth following a difficult year, the long-term visibility remains uncertain. The decision not to renew long-term rights with the NBA is seen as a strategic move amid industry pressures. Additionally, the company’s leverage remains high, which poses a potential obstacle to strategic opportunities. These mixed factors contribute to the Hold rating, reflecting both the potential for growth and the risks associated with current market dynamics.
In another report released today, Bernstein also maintained a Hold rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WBD in relation to earlier this year.
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