Shares of Warner Bros Discovery Inc. (NASDAQ: WBD) gained over 3.5% in pre-market trading to $17.70 after Citigroup raised its target price to $25 from $14, while maintaining a ‘Buy’ rating on the media conglomerate.
The brokerage cited improving fundamentals, stronger content monetization, and growing profitability across the company’s streaming business. Citigroup analysts highlighted that operational efficiencies and cost restructuring have started reflecting positively on Warner Bros Discovery’s earnings outlook, prompting the substantial target upgrade.
In a related development, Bloomberg reported that Warner Bros Discovery rejected a takeover offer of around $20 per share from David Ellison’s Paramount Skydance in recent weeks, terming the bid “too low.” The company’s shares have rallied over 36% since September 11, when reports first emerged about Ellison’s acquisition interest.
Warner Bros Discovery, the parent of HBO, Warner Bros. Entertainment, CNN, TNT, and Max, currently holds a market capitalization of $42.3 billion, with total debt standing at $35.6 billion as of June 30.
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