Here’s what Wall St. experts are saying about these media names ahead of results

Comcast (CMCSA) is scheduled to announce quarterly results on April 25, while Paramount (PARA) and Warner Bros. Discovery (WBD) are expected to report earnings on April 29 and May 9, respectively. What to watch for:

TOP PICK: Morgan Stanley named Comcast as the firm’s “Top Pick in the Cable & Satellite” industry, noting that it remains the firm’s only Overweight-rated name in the sector. Shares are now down 10% year-to-date despite a stable earnings outlook, says the firm, which remains confident Comcast can grow broadband ARPU consistent with its historical 3%-4% range in 2024 and beyond. Moderating losses at Peacock and the opening of its new theme park Epic Universe in 2025 should also contribute to consolidated EBITDA growth, Morgan Stanley tells investors.

NEGATIVE ON CABLE: Earlier this month, Wells Fargo lowered the firm’s price target on Comcast to $47 from $50, while keeping an Equal Weight rating on the shares. The firm is incrementally negative on cable, saying fiber is becoming a bigger headwind. Comcast is the “best house in the hood, but lacks positives,” Wells told investors in a research note. The firm believes broadband and subscriber trends have deteriorated over the last six months and will continue to be a headwind for cable valuations.

BID FOR PARAMOUNT: Sony Pictures (SONY) and Apollo Global (APO) have been in talks over partnering for a joint offer to buy Paramount, the New York Times’ Benjamin Mullin and Lauren Hirsch reported late last week, citing two people familiar with the matter. The two companies have not submitted an official bid, as the CBS parent is still in exclusive discussions with Skydance over a potential deal, the authors say, noting the potential Skydance pact has drawn significant pushback from shareholders.

Back in March, Jessica Toonkel of Wall Street Journal reported that Apollo Global had made an $11B offer to buy Paramount’s film and TV studio, citing people familiar with the situation. The offer came as an independent committee of the company’s directors is reviewing another offer from Skydance Media to merge with all of Paramount, the Journal adds. Netflix (NFLX) was among a number of companies that expressed interest over the past few years in buying Paramount’s studio, other people familiar with the situation told the paper. Shari Redstone, who is open to selling Paramount in its entirety, would have to agree to breaking up the company and allowing a sale of the studio to proceed, the Journal notes. Apollo’s offer is more than the entire market capitalization of Paramount Global, which is currently around $7.7B.

On the heels of the Skydance news, which was reported to be in talks to buy the Redstone family’s National Amusements – the owner of 10% of Paramount equity but 77% of Paramount’s voting rights, Rosenblatt upgraded Paramount to Neutral from Sell with a price target of $13, up from $9.

Wolfe Research upgraded Paramount to Peer Perform from Underperform without a price target following The Wall Street Journal’s report that portrayed rising odds of a sale of Paramount to Skydance, with Apollo looking more negotiable as well. The firm expects the secondary transaction, merging Skydance into Paramount, to have a higher likelihood of approval by the company’s independent committee of directors. With a higher probability for a change in ownership of Paramount, Wolfe sees less opportunity to extract further value from the downside in the shares.

SELL WARNER BROS.: On Tuesday, Wolfe Research downgraded Warner Bros. Discovery to Underperform from Peer Perform with a $7 price target. The firm says that with 80% of its EBITDA from linear TV and merger synergies done, it fears the company’s EBITDA peaked in 2023. Warner and Max “need fuel to grow, or a new White House to sell,” the firm tells investors in a research note. Wolfe further reduced its 2024 EBITDA forecast by 16% due to weaker studio results, Max’s international investments, and deterioration of linear advertising. It believes Warner Bros. Discovery’s 2025 and 2025 outlook seem riskier than 2023 and 2024.

SENTIMENT: Click here to check out Comcast recent Media Buzz Sentiment as measured by TipRanks.