Bank of America Securities analyst Jessica Reif Ehrlich maintained a Buy rating on Warner Bros (WBD – Research Report) today and set a price target of $14.00.
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Jessica Reif Ehrlich’s rating is based on a combination of strategic developments and financial restructuring at Warner Bros. Discovery. Since the merger in early 2022, the company’s shares have not met expectations, but the analyst sees potential in the company’s unique assets. The recent strategic reorganization into two segments and the S&P Ratings downgrade of WBD’s debt to high yield are viewed as positive steps that increase the company’s strategic flexibility.
The internal restructuring into Global Linear Networks and Streaming and Studios is designed to maximize profitability and growth, respectively. This new structure is expected to unlock shareholder value and provide opportunities for strategic alternatives. Additionally, upcoming catalysts such as easing studio comparisons, potential recovery in advertising, and growth in direct-to-consumer services support the Buy rating with a price objective of $14.
According to TipRanks, Reif Ehrlich is a 4-star analyst with an average return of 8.2% and a 55.48% success rate. Reif Ehrlich covers the Communication Services sector, focusing on stocks such as Comcast, Spotify, and Warner Bros.