UPDATE: Warner Brothers Discovery (WBD) Sandbagged Synergy Guidance, BofA Securities Initiates at Buy

BofA Securities analyst Jessica Reif Ehrlich initiates coverage on Warner Brothers Discovery (NASDAQ: WBD) with a Buy rating and a price target of $45.00.

The analyst stated "We believe management has spent the months leading up to closing developing a strategy to hit the ground running. Now it is time to execute on multiple levels, including building out a new organizational/ leadership structure, go-to-market strategy in DTC, and roadmap for realizing revenue/expense synergy potential. Trading at ~7x PF CY23E OIBDA, we believe the risk/reward for WBD is very favorable, especially as the market digests the technical overhang from completing the transaction. Near-term catalysts: (1) May adv. Upfront where WBD will go as a combined company; (2) additional mgmt. updates (likely on CY2Q earnings); (3) analyst event later this year; and (4) robust content slate."

For an analyst ratings summary and ratings history on Warner Brothers Discovery click here. For more ratings news on Warner Brothers Discovery click here.

Shares of Warner Brothers Discovery closed at $24.68 yesterday.

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