Analyst Doug Creutz of TD Cowen maintained a Hold rating on Warner Bros, boosting the price target to $22.00.
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Doug Creutz has given his Hold rating due to a combination of factors influencing Warner Bros. Discovery’s current financial standing and future prospects. The company’s Q3 results showed a strong performance in the Studios segment, driven by successful box office releases, which contributed to a beat on adjusted EBITDA expectations. However, the overall revenue fell short of estimates, primarily due to declines in Networks and Direct-to-Consumer (DTC) segments, which offset the gains made by the Studios.
Despite the positive performance in certain areas, there remains uncertainty regarding the company’s strategic direction, particularly with the potential for mergers and acquisitions. Management has indicated that the planned separation is on track for mid-2026, but no significant updates have been provided on potential sales or spin-offs. The price target has been raised to $22, factoring in a high probability of acquisition, but the Hold rating reflects the mixed performance across segments and the lack of clarity on future strategic moves.
Creutz covers the Communication Services sector, focusing on stocks such as Live Nation Entertainment, Roblox, and Warner Bros. According to TipRanks, Creutz has an average return of 15.1% and a 64.45% success rate on recommended stocks.
In another report released on October 31, Bernstein also maintained a Hold rating on the stock with a $16.00 price target.