HomeFinancial MarketsGoldman Sachs Recommends Buying Warner Bros. Discovery, Downgrades Paramount

Goldman Sachs Recommends Buying Warner Bros. Discovery, Downgrades Paramount

For those looking to invest in streaming, Goldman Sachs analyst Brett Feldman recommends being bullish on Warner Bros. Discovery (WBD). On the other hand, Paramount Global (PARA) is the one stock you should avoid.

In a note sent to clients on Tuesday, Feldman and his team explained that Warner Bros. Discovery is still undervalued. This is because the price doesn’t reflect the strength of the company’s streaming service, which should be one of the strongest on the market when fully integrated.

“We believe early traction with the company’s planned all-inclusive streaming service could be a positive catalyst for the stock,” said Feldman.

Goldman has put a price target of $22 on Warner Bros. Discovery stock. The company’s shares closed at $14.43 on Tuesday before trading as high as $15.27 on the following day.

As part of the note, Goldman’s analysts have downgraded Paramount Global stock from Buy to Sell. There is a concern the media and entertainment giant won’t be able to “follow through” on its strategy to make Paramount+ competitive in the streaming service market. The Paramount Global Class B shares are already down almost five percent in the past five days, closing at $24.53 per share on Wednesday.

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