Rosenblatt raised the firm’s price target on Warner Bros. Discovery (WBD) to $13 from $9 and keeps a Neutral rating on the shares. The firm says Warner Bros. could be worth more in a breakup. Its updated sum-of-the-parts shows the company could be $17 per share in a breakup, 39% above Thursday’s close. The risk in this view is that the value for the TV network portion of this break-up scenario disappoints, given substantial secular pressures, the analyst tells investors in a research note. Rosenblatt believes Warner Bros. could “easily” spin off its Global Linear Networks division, but adds cord cutting will probably remain pressured by affiliate fees.
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