Warner Bros’ Growth Potential and Strategic Management Reinforce Buy Rating

TD Cowen analyst Doug Creutz maintained a Buy rating on Warner Bros (WBD – Research Report) today and set a price target of $14.00.

Doug Creutz has given his Buy rating due to a combination of factors that highlight Warner Bros’ potential for growth and stability. Despite Warner Bros reporting fourth-quarter revenue slightly below expectations, the company demonstrated strong performance in its operating segments, particularly in Direct-to-Consumer (DTC) and Studios, which exceeded EBITDA estimates. This indicates a robust operational foundation that can drive future profitability.
Moreover, Warner Bros’ management has shown a commitment to strategic financial management, as evidenced by their efforts in debt reduction and their optimistic subscriber growth forecasts, aiming for 150 million subscribers by the end of 2026. The company’s focus on segment goals and potential restructuring of linear assets further suggests a proactive approach to navigating market challenges, reinforcing the Buy rating as a reflection of anticipated long-term value creation.

According to TipRanks, Creutz is a 5-star analyst with an average return of 19.5% and a 67.61% success rate. Creutz covers the Communication Services sector, focusing on stocks such as Electronic Arts, Take-Two, and Nintendo Co.

In another report released today, Barrington also maintained a Buy rating on the stock with a $16.00 price target.