BofA analyst Jessica Reif Ehrlich reiterated a Buy rating on Warner Bros. Discovery, Inc (NASDAQ: WBD) with a price target of $21.
The analyst anticipates WBD's 3Q results to largely reflect recent trends. The macro-environment remains choppy, albeit modestly improving Q/Q in advertising, and the various strikes are impacting studio results. Conversely, FCF generation will be robust (aided by the strikes), which will help accelerate the company's deleveraging plans.
Ehrlich's 3QE revenue is now $9.8 billion (vs. $10.0 billion previously), and our 3QE adjusted EBITDA is now $2.96 billion (vs. $3.20 billion previously).
Key revenue drivers include Studio revenue growth of 10% (vs. 15% previously), ...