Investing.com -- MoffettNathanson upgraded Warner Bros Discovery Inc (NASDAQ:WBD) to "Buy" from "Neutral," citing improved financial stability, growth at Max, and easing studio challenges.

Analysts expect debt reduction and see potential for transformative actions, making the company’s assets more attractive amid M&A speculation.

The company has the relative stability afforded by its latest recent round of significant affiliate fee renewals, as well as continued growth at Max and reduced Studio headwinds.

“We expect this to lead to continued de-levering into the medium term,” analyst said.

Meanwhile, Fox Corp Class A (NASDAQ:FOXA) was downgraded to "Neutral" from "Buy." Despite strong cash flows and M&A buzz, concerns over sustainability and elevated valuation are expected to cap upside potential.

“We expect investor questions around the sustainability of Fox’s current strong cash flows to likely limit the stock’s upside from these elevated levels,” analyst added.

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