Goldman Sachs analyst Brett Feldman maintained Warner Bros. Discovery Inc (NASDAQ:WBD) with a Buy and lowered the price target from $17 to $15. The analyst lowered estimates on linear advertising weakness.

KeyBanc analyst Brandon Nispel maintained a Hold rating. The analyst lowered his already below-consensus 2024 EBITDA estimates following Q3 results as he noted the company derisking expectations. 

The Q3 results came in mixed, though commentary on the call around challenges facing 2024 results focused on lack of visibility on linear advertising recovery, continued impact from the strike, and reinvesting at a slightly faster pace into growth initiatives, leading to WBD expressing doubts over hitting its gross deleveraging targets without a meaningful recovery in advertising. 

The analyst projects Q4 revenue of $9.8 billion (prior $10.1 billion) vs consensus $10.8 billion.

Benchmark analyst Matthew Harrigan reiterated a Buy with a price target of $24.

CEO David Zazlav did cite significant growth areas and even M&A possibilities, with the videogame business a primary engine, including Hogwarts Legacy. 

The analyst noted that Barbie is an immediate anomaly, although there will be numerous new Mattel movies, including Barbie, with likely pop culture fixation on casting decisions and availability. 

Despite the 2023 superhero malaise, including poor creative execution on significant releases from Warner Bros. and Walt Disney Co's (NYSE: DIS) Marvel, the analyst sees the studio poised for a continued turnaround off years of significant mismanagement, primarily for DC Comics with strong holiday performance from Aquaman and the Lost Kingdom and Wonka. 

The analyst projects Q4 revenue of $10.5 billion.

Wells Fargo analyst Steven Cahall reiterated WBD with an Overweight and lowered the price target from $20 to $16.

Price Action: WBD shares traded higher by 1.91% at $9.58 on the last check Thursday.