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BUZZ-Warner Bros Discovery rises after MoffettNathanson upgrades to 'buy'

ReutersJan 21, 2025 2:36 PM

Updates

** Media and entertainment company Warner Bros Discovery's shares WBD.O rise 3.1% to $9.82 in early trade

** Brokerage MoffettNathanson said on Tuesday it is upgrading WBD from 'neutral' to 'buy'

** In 2025, WBD is in a more stable financial position due to recent agreements with affiliates such as cable companies, brokerage says

** Company's streaming service Max is still growing, and it has overcome some challenges facing its movie studio — MoffettNathanson

** Brokerage says improved finances will allow WBD to reduce debt and improve investor perception

** WBD management could face pressures from investors to make big changes, including M&A deals. This could lead to a lot of deals and negotiations — MoffettNathanson

** Thirteen of 30 brokerages rate the stock "buy" or higher, 16 "hold" and 1 "sell" or lower; their median PT is $12.00 — LSEG

** In 2024, WBD lost ~9.1%, outperformed by sector peers such as Netflix NFLX.O, Walt Disney DIS.N, and Fox Corp FOXA.O

(Reporting by Rishi Kant in Bengaluru)

((Rishi.Kant@thomsonreuters.com))

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