Bright Future for Warner Bros. Discovery, Thanks To Content Slate and Debt Reduction Plans: Analyst
Portfolio Pulse from Anusuya Lahiri
Macquarie analyst Tim Nollen maintained an Outperform rating on Warner Bros. Discovery, Inc (NASDAQ:WBD) with a $20 price target. WBD revised its FY23 adjusted EBITDA guidance due to ongoing writers' and actors' strikes. However, the company raised its FY23 FCF guidance due to cash cost savings and the box office success of Barbie. WBD is confident in achieving its target of <4x net debt/EBITDA by year-end FY23. The analyst also noted market anxieties over the state of the linear bundle on Walt Disney Co (NYSE:DIS) and Charter Communications, Inc (NASDAQ:CHTR) carriage dispute. Rosenblatt analyst Barton Crockett reiterated Warner Bros. Discovery with a Sell and a $10 price target.
September 06, 2023 | 5:16 pm
News sentiment analysis
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NEGATIVE IMPACT
Market anxieties over the state of the linear bundle on Charter Communications could impact the company's stock.
The market anxieties over the state of the linear bundle on Charter Communications could lead to a negative impact on the company's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Market anxieties over the state of the linear bundle on Walt Disney Co could impact the company's stock.
The market anxieties over the state of the linear bundle on Walt Disney Co could lead to a negative impact on the company's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Warner Bros. Discovery has revised its FY23 EBITDA guidance due to ongoing strikes but raised its FCF guidance. The company is confident in achieving its debt reduction targets.
The ongoing strikes have led to a revision in the company's EBITDA guidance, which could negatively impact the stock. However, the company's raised FCF guidance and confidence in achieving its debt reduction targets could offset this impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100