Barbie's Success Drives Optimism for Warner Bros. Discovery Studios, Analysts Say
Portfolio Pulse from Anusuya Lahiri
Analysts from Truist Securities and Benchmark have maintained a Buy rating for Warner Bros. Discovery Inc (WBD), despite lowering the price target from $18 to $17 and $26 respectively. The analysts are optimistic due to the success of Barbie, which crossed $1B in global box office, and the company's strong FCF and cost synergy execution. However, they noted soft results and a lack of recovery in the linear ad market. Barbie's partner, Mattel, Inc (MAT), has 14 projects in active development.
August 07, 2023 | 6:18 pm
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POSITIVE IMPACT
Mattel, Inc (MAT), Barbie's partner, has 14 projects in active development, which could potentially drive the company's growth.
The active development of 14 projects by Mattel, Inc (MAT) could potentially drive the company's growth and positively impact the stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Analysts maintain a Buy rating for Warner Bros. Discovery Inc (WBD) due to the success of Barbie and strong FCF, despite lowering the price target.
The success of Barbie and strong FCF are positive factors for WBD. However, the lowered price target and lack of recovery in the linear ad market could negatively impact the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100