Warner Brothers Discovery (WBD) PT Raised to $27.75 at Bernstein

Bernstein SocGen Group analyst Laurent Yoon raised the price target on Warner Brothers Discovery (NASDAQ: WBD) to $27.75 (from $23.50) while maintaining a Market Perform rating.

The analyst commented: "What Q4 print implies for the NFLX/PSKY deal; WBD’s Q4 print is just around the corner, but our recent investor conversations have largely centered on the ongoing deal process and the “next move” —justifiably so. Still, there is one number that matters a lot in Q4: Linear EBITDA.

We do not anticipate WBD stock to move materially in either direction as a result of their Q4 print. However, if the management signals a steeper Linear decline—further eroding DG’s value—NFLX would likely need to raise its bid to remain competitive, which the market is already pricing in. Investment Implications: We maintain our Market-Perform rating for WBD with an adj PT of $27.75 (+$4.25), which is NFLX’s accepted offer for WBD’s S&S and likely the floor price."

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