Warner Bros. Discovery (NASDAQ:WBD) has announced plans to expand its Leavesden studio in the United Kingdom by more than 50%. This expansion includes the addition of 10 new sound stages and an extra 400,000 square feet of production and support space. As a result of this upgrade, the studio is expected to become a primary production hub for DC Studios.
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The expansion will increase the number of stages at Leavesden from 19 to 29. Further, the investment is expected to raise the annual film and television production value by £200 million to £600 million.
Also, the expansion is anticipated to generate approximately 4,000 jobs in the area, both directly and indirectly. Construction is scheduled to commence in the second quarter of 2024 and is slated for completion in 2027.
It is worth mentioning that the expansion plans come at a time when the company’s California production facility is facing the first joint writers’ and actors’ strikes in 63 years. The delays in major projects caused by the strike resulted in WBD expecting a $300 million to $500 million hit to adjusted EBITDA in 2023.
What is the Forecast for WBD Stock?
Currently, Wall Street analysts are forecasting a substantial 80% upside potential in WBD stock to reach an average price target of $20.67. Based on nine Buy and four Hold ratings assigned in the past three months, Warner Bros. has a Moderate Buy consensus rating on TipRanks.
Furthermore, WBD has an Outperform Smart Score of nine on TipRanks, which points to its potential to beat the market averages.
