A little extra love from analysts often gives a stock a little extra help. That’s what happened to Warner Bros Discovery (NASDAQ:WBD) as it gained on the strength of a couple analysts changing their minds.
The first slice of good news came from Steven Cahall, an analyst with Wells Fargo. While the macroeconomic picture might be tough for entertainment right now, Cahall notes that Warner has a solid cash flow that should help it survive the worst of a downturn and come out the other side. Cahall hiked his price target to $20 as well. Meanwhile, Wolfe Research analyst Peter Supino not only offered an upgrade but also bumped his price target up to match Cahall’s at $20.
Supino noted that 2022 was a year of negative moves for Warner Bros Discovery, including a lot of property cuts and forecast reductions. Supino summed up his stance by noting that “…the skeletons in Warner’s closet have been accounted for.” That suggests, in turn, that Warner’s 2023 should be looking a lot better. Both Supino and Cahall also applauded one big move: a connection between CEO David Zaslav‘s bonus structure and Warner’s free cash flow performance.
Meanwhile, the rest of the analyst pool is pretty solidly on Warner’s side here as well. Analyst consensus calls Warner Bros Discovery stock a Moderate Buy. With an average price target of $18.85, Warner stock enjoys 31.45% upside potential.