Warner Bros. Discovery price target lowered to $12 from $15 at Evercore ISI

Evercore ISI lowered the firm’s price target on Warner Bros. Discovery to $12 from $15 and keeps an Outperform rating on the shares. Shares sold off 10% following softer-than-expected Q4 revenue and EBITDA, commentary suggesting the company will see EBITDA pressure in Q1 and some disappointment in the lack of guidance for 2024, notes the analyst. While the firm doesn’t think the reaction was “a complete misread” and acknowledges the quarter as “yet another reminder of the secular, cyclical, and creative challenges facing the broader media ecosystem,” it continues to believe in the significant longer-term opportunity at Warner Bros. Discovery, the analyst tells investors.