UBS Reiterates Neutral Rating on Warner Brothers Discovery (WBD)

UBS analyst reiterated a Neutral rating and $9.00 price target on Warner Brothers Discovery (NASDAQ: WBD).

The analyst commented, "We expect 1Q results to reflect continued progress on DTC profit targets, tough theatrical comparisons and sustained pressure at Networks. We expect consolidated revenues to decline 7.8% y/y to $9.2B (prior $9.5B) while EBITDA falls 5.8% y/y to $1.98B (prior $2.08B) with accelerating Networks declines but better DTC/Studio. We now look for full year EBITDA of $8.65B (prior $8.78B), a 4% decline. Similar to peers, we believe linear advertising generally held in during 1Q (declines similar to trend) while digital/CTV faced additional pressure. Looking ahead, we are making an incremental cut to total company advertising in '25E (-13%, prior -10%; past recessions have driven ~5-10% declines in TV ad). In addition to recession risks, we expect the focus to remain on the new reporting structure and strategic initiatives to unlock value."

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 $8.07 yesterday.

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