Warner Bros Discovery Stock Rises On Day 3 As Veteran Analyst Sees Company “Ready To Hit The Ground Running”
13.04.2022 - 23:31
/ deadline.com
Shares in Warner Bros Discovery gained more than 5% to finish the trading day at $25.97 after earlier rising as much as 11% with a few more bulls piling into the new stock.
It is just the third day of trading for WBD, which moved sideways yesterday after starting off on Monday at $24.08. WarnerMedia formally spun off from AT&T and completed its $43 billion merger with Discovery last Friday. AT&T shareholders own 71% of the new company, though Discovery management is in charge. Volume was heavy, approaching six times the stock’s average.
The upswing came on a day of broader progress for the stock markets, with the Nasdaq up 2% and the Dow rising 1%. Other media and tech companies’ gains were generally more modest than Warner Bros Discovery’s, however.
Jessica Reif Ehrlich, a longtime media analyst with Bank of America, issued a full-throated endorsement of WBD in a report this morning, initiating coverage with a “buy” rating. Assigning a 12-month price target of $45, she wrote in a note to clients that the combined company is a “global media powerhouse” and “ready to hit the ground running.”
In Ehrlich’s view, the deal is “the third major media transformation in the last two decades,” after Bob Iger’s ascension to CEO of Disney in 2005 and Comcast’s acquisition of NBCUniversal in 2011.
“In our view, WBD management is strong across multiple areas: strategically, operationally and financially and has a strong track record of acquisition acumen,” Ehrlich wrote. “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
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