Warner Bros (WBD) stock is a hot topic on Tuesday after four-star Bank of America analyst Jessica Reif Ehrlich suggested that the company would do better after a spinoff of its streaming business. According to the analyst, such a move would help unlock unrealized value at the entertainment company.
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Ehrlich stated her spinoff opinions and reiterated a Buy rating and $14 price target for Warner Bros, suggesting a possible 40% upside for the stock. She gave this rating despite Warner Bros falling below her estimates ever since its combination with Discovery in 2022.
The Bank of America analyst argued there’s already evidence that Warner Bros is considering a streaming spinoff. The company recently reorganized to separate its streaming business from its other operations. Ehrlich suggested this could be a sign the company is aiming for a spinoff.
WBD Stock Movement
Warner Bros stock hasn’t performed well in 2025, with the company’s shares down 5.11% year-to-date. That’s despite strong 2025 box office performance from several films, including Final Destination Bloodlines, A Minecraft Movie, and Sinners.
Warner Bros’ 2025 stock drop also came despite reports that streaming is finally turning profitable. That’s welcome news for a company that might be weighing a spinoff of its streaming business. Like many stocks, WBD suffered a large drop in April when President Donald Trump announced tariffs. While it has recovered some since then, it’s still not back to pre-Liberation Day levels.
Is Warner Bros Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Warner Bros is Moderate Buy, based on eight Buy and nine Hold ratings over the past three months. With that comes an average WBD stock price target of $12.50, representing a potential 24.44% upside for the shares.
See more WBD stock analyst ratings
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