Warner Bros. Discovery and Paramount Gain Analyst Support as Merger Talks Intensify
Portfolio Pulse from Anusuya Lahiri
Warner Bros. Discovery Inc (WBD) and Paramount Global (PARA) have gained analyst support amid intensifying merger talks. Benchmark analyst Matthew Harrigan reaffirmed a Buy rating on WBD with a $24 price target, despite market skepticism over a potential deal with PARA. Harrigan also outlined potential synergies and leverage outcomes from a merger. Analyst Daniel L. Kurnos reiterated a Buy rating on PARA with a $30 price target, highlighting potential synergies and the possibility of a revived BET deal. WBD shares were down 1.78% at $11.28, while PARA shares were down 0.52% at $14.99.
December 22, 2023 | 6:52 pm
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POSITIVE IMPACT
Analyst Daniel L. Kurnos reiterated a Buy rating on Paramount Global with a $30 price target, noting the potential for at least $3 billion in synergies from a merger with WBD and a possible BET deal revival.
The Buy rating and $30 price target for PARA, along with the mention of significant synergies and a BET deal, indicate a positive outlook that could drive investor interest. The slight share price decline may not reflect the potential long-term benefits of these developments.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Benchmark analyst Matthew Harrigan reaffirmed a Buy rating on Warner Bros. Discovery with a $24 price target, despite current market skepticism over a potential merger with Paramount Global.
The reaffirmation of a Buy rating and a $24 price target by an analyst suggests confidence in WBD's value and potential, which could positively influence investor sentiment in the short term. However, market skepticism over a deal with PARA tempers the potential impact.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90