BofA Securities Reiterates Buy Rating on Warner Brothers Discovery (WBD)

On June 2, analysts at BofA Securities reiterated a ‘Buy’ rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and a $14 price target. Amid the bullish stance, the analysts reiterated that the stock has underperformed the broader market since 2022. However, it has started showing strong momentum, as depicted by the 21% return over the past year.

Consequently, the analysts are confident about the company’s unique and valuable assets. Additionally, they are optimistic about a push to unlock unrecognized value through the spin-off of studio and streaming segments.

BofA Securities Reiterates Buy Rating on Warner Brothers Discovery (WBD)

A couple watching their favorite show on TV, enjoying the entertainment network service.

Warner Bros. Discovery has successfully reorganized two segments, aiming to enhance strategic flexibility for future growth and adaptability. According to BofA Securities analysts, the downgrade of the company’s debt to ‘BB+’ is a significant factor contributing to strategic flexibility.

The remarks follow the first quarter 2025 results whereby Warner Brothers Discovery delivered a loss per share of $0.18, a wider-than-expected loss of $0.13. Revenue in the quarter totaled $8.98 billion compared to $9.59 billion expected. Amid the wider-than-expected net loss, the company added over 5 million subscribers in the quarter, affirming strong growth in its platform. Warner Brothers Discovery also announced plans to rebrand its streaming platform Max to HBO Max. By rebranding, the company hopes to capitalize on HBOs brand reputation for quality content.

Warner Bros. Discovery is a media company that makes and shares movies, TV shows, and online content. It owns popular brands like Discovery channels and Warner Bros., bringing entertainment to audiences everywhere.

While we acknowledge the potential of Warner Bros. Discovery, Inc. (NASDAQ:WBD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WBD and that has 100x upside potential, check out our report about the cheapest AI stock.

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