Warner Bros Discovery stock should be worth $20: Goldman Sachs

July 19, 2023 04:10 AM AEST | By Invezz

Warner Bros Discovery stock should be worth $20: Goldman Sachs — Image source: Invezz

Warner Bros Discovery stock could climb 60%

On Tuesday, Brett Feldman named the multinational his “top pick” in mass media and said its shares could climb all the way up to $20 – about a 60% premium on their current price.

The analyst is constructive on Warner Bros Discovery stock partly because the entertainment conglomerate has repaid over $1.0 billion of debt.

We see risk/reward skew for WBD as most attractive vs. its peer group with key execution catalysts … largely within management’s control.

He expects the Nasdaq-listed firm to generate $43 billion in revenue and $11 billion in adjusted EBTIDA this year.

Can WBD stand the ongoing Hollywood strike?

Feldman’s bullish call on Warner Bros Discovery stock is particularly interesting as it arrives at a time when the Hollywood is on strike.

The Goldman Sachs analyst agrees that a resolution on that front may take a while but is confident that company-specific execution will trump secular trends as far as “WBD” is concerned.

Strength of the balance sheet, he added, should unlock further upside for the New York based company.

Last month, Warner Bros Discovery was reported considering offloading some of its music catalogue from TV shows and movies to boost its cash stature. It’s currently trading at roughly half the price at which the tech stock IPO-ed in April of 2022.

The post Warner Bros Discovery stock should be worth $20: Goldman Sachs appeared first on Invezz.

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