Warner Brothers Trade Call with $40 Price Target

about 1 month ago

"And finally, I got to hit Warner Brothers, AWB up as much as 3%. So this is in The Wall Street Journal. They're saying that Paramount, Comcast, Netflix, they're preparing bids. They say there's a parent cut off for those bids of November 20th and they're saying Warner Brothers hopes to have it all wrapped up by the end of the year. You have the Bloomberg report that their CEO, David Zaslav, they're kind of recommending his contract to make sure his stock options remain eligible to best, you know, even if it's sold. So a lot of kind of pointers in that direction. Yeah, that's the one. You know, many my compensation agreement that tells me that they are really, really incented to get a deal done. You know, he thinks something is going to get done so that he wants to make signs. I think it's a very good sign. And I think you've got multiple bidders there, all with deep pockets. But I think Warner Brothers, Discovery, it's got an enterprise value of almost $90 billion today. You may have to pay a premium. So let's say that's $100 billion. That's a big deal for everybody that we're talking about here. I mean, it's a transformative deal for everybody we're talking about here. So I think still some more private equity is going to need be going to be sitting here up 109%. Yeah, but it isn't a dog forever. So I think this thing should be a $40 stock."

The speaker highlights Warner Brothers (AWB) as a compelling opportunity, noting that despite its current premium, multiple bidders and strategic catalysts could drive the stock to a $40 price target by the end of the year.

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