Warner Bros, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Ric Prentiss from Raymond James reiterated a Buy rating on the stock and has a $22.00 price target.
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Ric Prentiss has given his Buy rating due to a combination of factors including the anticipation of potential mergers and acquisitions that could significantly increase Warner Bros’ valuation. The analyst has raised the price target from $13 to $22, reflecting the potential for a bid from Paramount Skydance, which is expected to offer a price in the range of $22-24 per share.
Prentiss believes that the urgency of a pre-split offer could have tax implications, making it a strategic move for Skydance to act swiftly. Additionally, the possibility of other bidders such as Amazon, Apple, and Sony expressing interest in Warner Bros’ streaming and studio assets adds to the attractiveness of the stock. The analyst’s scenario analysis suggests that the current market conditions and potential synergies from a merger make Warner Bros a favorable investment opportunity.
In another report released on September 30, Bank of America Securities also reiterated a Buy rating on the stock with a $24.00 price target.