Barrington analyst Patrick Sholl reiterated a Buy rating on Warner Bros (WBD – Research Report) today and set a price target of $16.00.
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Patrick Sholl has given his Buy rating due to a combination of factors that highlight Warner Bros. Discovery’s potential for growth and profitability. The company’s direct-to-consumer (DTC) segment is showing positive trends, with expectations to generate significant EBITDA from streaming operations in 2025. This growth is supported by increasing subscriber numbers, successful bundling strategies, and the introduction of an ad-supported tier, which are all expected to enhance monetization efforts. Additionally, the international market is contributing significantly to subscriber growth, with further expansion planned for 2026.
Moreover, the studio segment is projected to achieve substantial profits in the long term, driven by a strong performance in film operations and better utilization of its intellectual property library. The company’s recent reorganization is expected to provide greater flexibility in pursuing shareholder value, especially through its Streaming & Studios and Global segments. Despite challenges in the linear environment, Warner Bros. Discovery is focused on managing costs to support margins and leveraging its content across platforms. These strategic initiatives, along with efforts to reduce leverage and enhance cash flow conversion, underpin Sholl’s optimistic outlook and the Buy rating.
In another report released on June 2, Bank of America Securities also maintained a Buy rating on the stock with a $14.00 price target.