
KeyBanc's Brandon Nispel downgraded Warner Bros. Discovery (NASDAQ: WBD) to Sector Weight, arguing that takeover speculation has inflated shares beyond fundamentals.
He sees a 50% chance no deal happens and the stock falls back to $12, a 40% chance of a $25 Paramount Skydance (NASDAQ: PSKY) offer, and only a 10% chance of a bidding war lifting shares to $40—leaving the risk/reward neutral.