Warner Bros. Discovery Will Hit The Ground Running, BofA Says

Warner Bros. Discovery WBD has a strong management team and is getting ready to execute on multiple levels, according to BofA Securities.

The Warner Bros. Discovery Analyst: Jessica Reif Ehrlich initiated coverage of Warner Bros. Discovery with a Buy rating and a price target of $45.

The Warner Bros. Discovery Thesis: The company’s management team is strong “across multiple areas: strategically, operationally and financially” and has a proven track record of “acquisition acumen,” Ehrlich said in the initiation note.

“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 DTC, and roadmap for realizing revenue/expense synergy potential,” the analyst wrote.

“We view WBD’s initial cost synergy target of $3bn as highly achievable, if not conservative, given several areas of duplicative expenses (e.g., tech, ad/distribution sales force, real estate, etc.),” he added.

WBD Price Action: Shares of Warner Bros. Discovery had risen by 1.70% to $25.12 at the time of publication Wednesday according to Benzinga Pro.