TD Cowen Raises Warner Bros. Discovery, Inc. (WBD) Price Target to $26

Group 1 - TD Cowen raised the price target for Warner Bros. Discovery, Inc. (WBD) to $26 from $22 while maintaining a Hold rating after the fourth-quarter results exceeded expectations for both revenue and adjusted EBITDA [1] - The valuation by TD Cowen includes a 65% probability of a potential acquisition at $31 per share and a 35% chance that regulatory challenges could block the deal, potentially lowering the stock to $12 [1] - Deutsche Bank downgraded WBD to Hold from Buy with a price target increase to $31 from $29.50, citing limited upside after Warner's decision regarding Paramount Skydance's offer [2] Group 2 - Reports indicate that Ted Sarandos, co-CEO of Netflix, visited the White House to discuss the potential transaction, suggesting the possibility of competing bids for WBD [2] - Analysts believe that a combined Paramount-Warner entity could become a strong competitor to Netflix in the global streaming and entertainment market [2] - Warner Bros. Discovery, Inc. was formed on April 8, 2022, through the spin-off of WarnerMedia from AT&T and its merger with Discovery, Inc. [3]