Warner Bros, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating on the stock and has a $24.00 price target.
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Jessica Reif Ehrlich’s rating is based on the strategic direction Warner Bros is taking, particularly the planned split of the company by early 2026. This separation is expected to unlock significant value, as the standalone streaming and studio assets could attract considerable interest from potential buyers, leading to a bidding war. The market currently underestimates the value of the Discovery Global business, and post-split, there are several strategic options that could further enhance the company’s value.
Moreover, Warner Bros is demonstrating strong performance in its Studios and Streaming segments, with a robust box office showing that is likely to exceed the company’s financial targets. The analyst has raised the price objective to $24, reflecting an anticipated multiple expansion and improved fundamental performance. Upcoming catalysts, such as a strong slate of studio releases, potential recovery in advertising, and continued growth in direct-to-consumer services, further support the Buy rating.
Reif Ehrlich covers the Communication Services sector, focusing on stocks such as Charter Communications, iHeartMedia, and Warner Bros. According to TipRanks, Reif Ehrlich has an average return of 9.4% and a 52.76% success rate on recommended stocks.