Today news
Warner Bros
Warner Bros. Entertainment Inc. (commonly known as Warner Bros. and abbreviated as WB), is an American diversified multinational mass media and entertainment conglomerate headquartered at the Warner Bros. Studios complex in Burbank, California, and a division of AT&T's WarnerMedia. Founded in 1923 by brothers Harry, Albert, Sam, and Jack Warner, the company established itself as a leader in the American film industry before diversifying into animation, television, and video games, and is one of the "Big Five" major American film studios, as well as a member of the Motion Picture Association (MPA).
Related News
David Zaslav Warner Bros Jennifer Maas Warner Discovery county Wells city Fargo, county Wells performer reports CEO target Fox Upgraded David Zaslav Warner Bros Jennifer Maas Warner Discovery county Wells city Fargo, county Wells

Warner Bros. Discovery Stock Upgraded by Analysts Bullish on Execs’ Free Cash Flow-Based Bonuses

Reading now: 952
variety.com

Jennifer Maas TV Business Writer Warner Bros. Discovery received stock upgrades from two media analyst firms Friday for, among other things, making the decision to tie bonuses for CEO David Zaslav and his team to free cash flow performance. “We threw everything and the kitchen sink at a Downside Case scenario for WBD, and it still delevers to 3x by ’25E,” Wells Fargo analysts wrote in a research note published Friday, in which they upgraded WBD’s stock to “overweight” with a price target increase from $13 to $20 per share. “We now have conviction in FCF to limit downside, while the stock has asymmetric upside.” Meanwhile, Wolfe Research moved WBD from its “peer perform” rating to “outperform” and also upped the price target to $20. (At time of publication Friday, WBD stock was trading at $14.51 per share.) “Investors are rightly skeptical of media cash flow forecasts,” Wolfe’s Peter Supino wrote. “Media executives get paid for growth, and content growth requires working capital.

At Warner Discovery, the executives get paid for free cash flow and debt paydowns. That’s why we expect them to deliver high (>50%) of EBITDA to free cash flow as merger-driven charges subside.

We don’t assume revenue growth, but we do estimate 3.9x gross leverage by YE’23 (guide <4x) and 3.0x by YE’24 (guide 2.5-3.0x).” For the fourth quarter of 2022, Warner Bros.

Discovery competitors including Paramount, Disney and Fox all reported negative free cash slow, while WBD reported $3.3 billion free cash flow for the full year (the company does not break out free cash on a quarterly basis) exceeding its guidance of $3 billion.

Read more on variety.com
The website celebsbar.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA