Guggenheim Reiterates Buy Rating on Warner Brothers Discovery (WBD)

Guggenheim analyst Mike Morris reiterated a Buy rating and $9.00 price target on Warner Brothers Discovery (NASDAQ: WBD).

The analyst commented: "We update our Warner Bros. Discovery model to reflect 1) sequentially worse Networks advertising outlook, offset by higher Olympics sublicensing, 2) refined
Direct-to-Consumer (DTC) subscriber net adds to be more International weighted, and 3) lower content marketing spend at Studios in 4Q. Our 3Q total company revenue is now $9.98bn (vs. $9.91bn prior), while our total company adj. EBITDA forecast is now $2.44bn (vs. $2.46bn prior). Our full year adj. EBITDA estimate remains unchanged at $8.92bn. We lower our 3Q free cash flow forecast to $487mm to better reflect the company’s semi-annual cash debt payment with our full year FCF outlook largely unchanged at $3.84bn (43.0% FCF conversion). We maintain our BUY rating and $9 price target."

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 $8.16 yesterday.

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