Warner Bros (WBD – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Matthew Harrigan from Benchmark Co. maintained a Buy rating on the stock and has a $18.00 price target.
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Matthew Harrigan has given his Buy rating due to a combination of factors including Warner Bros. Discovery’s strategic and financial initiatives aimed at reconciling direct-to-consumer and studio growth with more efficient cost structures. The company is expected to continue monetizing its in-house content through its Max platform, while new content deals with Xfinity and Spectrum are anticipated to enhance consumer offerings and facilitate a smoother transition to streaming.
Additionally, despite a projected slight year-over-year revenue contraction, Warner Bros. Discovery is expected to report a significant increase in adjusted EBITDA and free cash flow. The company’s valuation is supported by potential double-digit free cash flow yields, and Harrigan remains optimistic about the company’s ability to adapt to changing media consumption patterns, even with challenges in its networks segment and the loss of NBA rights. The strategic focus on key intellectual properties and successful in-house game development further bolster the positive outlook.
According to TipRanks, Harrigan is an analyst with an average return of -0.6% and a 52.68% success rate. Harrigan covers the Communication Services sector, focusing on stocks such as Ooma, Comcast, and Grupo Televisa, S.A.B..