{"id":585521,"date":"2023-08-03T21:04:21","date_gmt":"2023-08-03T18:04:21","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/warner-bros-discovery-analysts-react-to-streaming-and-debt-progress-with-one-downgrading-stock\/"},"modified":"2023-08-03T21:04:21","modified_gmt":"2023-08-03T18:04:21","slug":"warner-bros-discovery-analysts-react-to-streaming-and-debt-progress-with-one-downgrading-stock","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/warner-bros-discovery-analysts-react-to-streaming-and-debt-progress-with-one-downgrading-stock\/","title":{"rendered":"#Warner Bros. Discovery Analysts React to Streaming and Debt Progress, With One Downgrading Stock"},"content":{"rendered":"
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\n Warner Bros. Discovery\u2019s progress in making its streaming business profitable and reducing its debt after the mega-merger that created the Hollywood giant was in Wall Street\u2019s focus on Thursday.<\/p>\n

\n With the entertainment conglomerate\u2019s second-quarter results in the book, including a streaming loss of just $3 million, and management commentary, including boosting its post-merger cost-savings target to more than $5 billion, analysts shared their latest takes on the stock, which has gained year-to-date, and its outlook.<\/p>\n

\n Several experts reiterated their confidence in the company\u2019s path and improvements, but at least one analyst swam against the stream, downgrading their stock rating. As of mid-day Thursday, the conglomerate\u2019s shares were down 1.2 percent at $12.40.<\/p>\n

\n Bank of America<\/strong> analyst Jessica Reif Ehrlich<\/strong> had a bullish reaction to the earnings update, maintaining her \u201cbuy\u201d rating and $21 stock price target on Warner Bros. Discovery. \u201cWBD\u2019s second-quarter performance reflects the heavy lifting management has undertaken over the last year,\u201d she argued in a report that she entitled \u201cRinging the Register.\u201d<\/p>\n

\n Streaming \u201cwas essentially breakeven\u201d in the latest period \u201cdespite marketing effort to launch Max in May while free cash flow was significantly above our estimates,\u201d she also highlighted. Concluded Reif Ehrlich: \u201cWe remain extremely bullish on the long-term potential of WBD and view current valuation as attractive.\u201d<\/p>\n

\n Guggenheim<\/strong> expert Michael Morris<\/strong> kept his $18 stock price target and a \u201cbuy\u201d rating in his assessment. \u201cProfitability outlook was largely unchanged with management now expecting it to come in at the lower end of the previous $11-$11.5bn range, pointing to the writers strike and ad market as potential puts and takes,\u201d Morris wrote. \u201cThe company continues to execute on synergies efforts, noting a clear path to achieving $5bn or more.\u201d<\/p>\n

\n Wells Fargo<\/strong> analyst\u00a0Steven Cahall<\/strong>\u00a0also maintained his $20 stock price target and \u201coverweight\u201d rating in a report entitled: \u201cDeleveraging Like a Boss.\u201d \u201cRevenues remain somewhat choppy but WBD is managing to do what it can: adjusted EBITDA, free cash flow and ultimately deleveraging,\u201d he wrote. \u201cWith strong HBO and Warner Bros. content we think it has lots of options.\u201d<\/p>\n

\n The expert also argued that \u201ccost controls and cash generation are WBD management\u2019s strong suit. His conclusion: \u201cWBD is the most commercial media<\/a> company in terms of always considering options, including licensing HBO content, M&A, etc.\u201d<\/p>\n

\n TD Cowen<\/strong>\u00a0analyst\u00a0Doug Creutz<\/strong> also reiterated his \u201coutperform\u201d rating with a $19 price target on WBD\u2019s stock,\u201d highlighting on Thursday that \u201dmanagement continues to execute against financial targets.\u201d<\/p>\n

\n Meanwhile, CFRA Research<\/strong>\u00a0analyst\u00a0Kenneth Leon<\/strong>, cut his rating from \u201cbuy\u201d to \u201cneutral\u201d and his price target on WBD shares by $4 to $14. \u201cWBD is making progress to realize higher growth and profitability, but at a slower pace than our expectations,\u201d he explained.<\/p>\n

\n And UBS<\/strong> analyst John Hodulik<\/strong> remains \u201cneutral\u201d on WBD shares with a $15 price target, but also underlined the company\u2019s progress on cutting down its debt. \u201cUpside to cash generation keeps deleveraging on track\u201d was his app<\/a>ropriate report headline. He highlighted that \u201cEBITDA [was] ahead and free cash flow significantly better\u201d than expected.<\/p>\n

\n Hodulik also offered that streaming was near breakeven in the second quarter, \u201clikely boosted by library deals.\u201d<\/p>\n<\/p><\/div>\n

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Warner Bros. Discovery\u2019s progress in making its streaming business profitable and reducing its debt after the mega-merger that created the Hollywood giant was in Wall Street\u2019s focus on Thursday. With the entertainment conglomerate\u2019s second-quarter results in the book, including a streaming loss of just $3 million, and management commentary, including boosting its post-merger cost-savings target…<\/p>\n","protected":false},"author":1,"featured_media":585522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2023\/08\/GettyImages-1534935558-H-2023.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[108028],"class_list":["post-585521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-warner-bros-discovery"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/585521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=585521"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/585521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/585522"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=585521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=585521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=585521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}