Warner Bros. Discovery upgraded to Neutral from Sell at Rosenblatt

Rosenblatt analyst Barton Crockett upgraded Warner Bros. Discovery (WBD) to Neutral from Sell with a price target of $10, up from $7. If Paramount (PARA) is broken up, Warner Bros. Discovery would be perceived as likely to, as well, with similar puts/takes, the analyst tells investors. Warner’s studio is much more profitable than Paramount’s, benefiting from movie strength, sizable TV production, and a meaningful presence in video games and if it were valued at 13 times, it is worth $30B, versus net debt near $40B, so the equity value would have to come from TV networks and direct-to-consumer streaming, the analyst added.