Why did Warner Bros. Discovery Stock jump today? BofA sees improving story
Warner Bros. Discovery (NASDAQ:WBD) rose another 8.2% Tuesday, starting to chart a turnaround after a disheartening 2022 with its eighth straight daily gain.
Shares had closed at $8.87 apiece on Dec. 28. Since that time, they've risen 42% to $12.56.
On Tuesday, it was the beneficiary of BofA noting an improving narrative for the beleaguered media operator, and adding WBD to its "US 1" list.
Analyst Jessica Reif Ehrlich expects the company's fourth-quarter earnings, due later in February, to reflect the ongoing "choppy" macroeconomic environment, particularly as it applies to the advertising market.
Still, "cyclical headwinds should abate" as those conditions get better, and the earnings provide a chance for management to "turn the page to 2023 and reset the narrative."
BofA has a Buy rating and a $21 price target, now implying another 67% upside ahead.
Wall Street is bullish with a Buy rating at present, as are Seeking Alpha authors. Seeking Alpha's Quant Ratings consider the stock a Hold.