Warner Bros. Discovery stock ticks up amid analyst upgrades

The Yahoo Finance Live team discusses the lift in WBD stock following some analysts' upgrades.

Video transcript

- My triple play is Warner Brothers Discovery. The stock is seeing a boost after two upgrades on Wall Street this morning, citing optimism surrounding WBD's execution strategy and improvements on cost synergies. Analysts at both Wells Fargo and Wolfe Research upgraded shares to overweight and outperform respectively. And raised their price targets to $20 a share.

Wolfe's Peter Supino said after a rough 2022, quote, "The skeletons in Warner's closet have been accounted for" and that the streaming giant is getting their [? sea ?] legs. Wells Fargo Steve [INAUDIBLE] said the question for WPD is not the bull case, but the bear case. And if the company can execute well amid macro headwinds, the stock can, quote, "absolutely work."

So it feels like guys the word on the street at least right now is Warner Bros Discovery. It's so bad that it might just be good. So that's what I got from this.

- Well and I think it's going to be so interesting to see how they bundle their services. And all the details that are going to go into that, because we're supposed to get more details on that in April.

- Exactly. And Steve [INAUDIBLE] he did say that they were potentially undervalued in the streaming space with their DTC offering. So I think investors are really going to be looking--

- Yeah. DTC offerings is one of those things that Wells Fargo did call out in that note. It's been so interesting just to see the sentiment shift when we're talking about Warner Brothers Discovery. Now it seems like it's almost every week that comes about that there's a new analyst call on the stock, someone upgrading the stock. Really a more positive view of it.

And another thing that stuck out to me was from Wolfe Research talking about the transparency. They're seeing greater visibility into the internal workings here of the company. Giving them a little bit more comfort just in terms of the direction of Warner Brothers Discovery. But certainly a very competitive landscape. So they have their work cut out for them, but at least for now this is very positive.