Warner Bros. Discovery upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc analyst Brandon Nispel upgraded Warner Bros. Discovery to Overweight from Sector Weight with an $11 price target. The company’s Q1 results exceeded expectations driven by improved profitability on direct-to-consumer, the analyst tells investors in a research note. Going forward, the NBA renewal is important for which a resolution alone is a catalyst for shares, says the firm. KeyBanc is also more optimistic on Warner’s direct-to-consumer profit trajectory and expect Studio’s performance is likely at a trough in 2024.