Analyst Calls Drive Divergent Trajectories for Warner Bros Discovery, Hershey, and Apple

Key Analyst Actions Impact Market Perceptions

Recent shifts in analyst sentiment have carved out distinct paths for prominent companies across various sectors. TD Cowen has downgraded Warner Bros Discovery (WBD), citing volatility from unconfirmed acquisition rumors and regulatory scrutiny. Conversely, Goldman Sachs has delivered a significant double upgrade to Hershey (HSY), buoyed by improving market fundamentals. Meanwhile, Bernstein initiated coverage on Apple (AAPL) with an "Outperform" rating, identifying it as a pivotal player in the burgeoning artificial intelligence landscape.

Warner Bros Discovery Faces Downgrade Amid M&A Uncertainty

Warner Bros Discovery (WBD) experienced a downgrade from TD Cowen, moving its rating from Buy to Hold while maintaining a $14.00 price target. The firm noted that WBD's stock had surged beyond this target on the back of unsubstantiated reports suggesting a potential acquisition bid by Paramount Skydance. TD Cowen expressed concerns regarding the risk-reward profile, cautioning that shares could revert to the $11-$12 range if an acquisition does not materialize. This uncertainty is compounded by vocal opposition from lawmakers; Senator Elizabeth Warren publicly stated, "The ink is barely dry on the shady $8 billion Paramount/Skydance merger, and now Paramount wants to add Warner Bros Discovery to its growing list of owned media companies. This deal would be a dangerous concentration of power over our media and news. It should be blocked." While InvestingPro data showed a 127% return for WBD over the past year, with the stock trading near its 52-week high of $19.59, its Price-to-Earnings (P/E) ratio stood at 60.8. Diverging from TD Cowen, Benchmark reiterated its Buy rating for WBD with an $18.00 price target, labeling it a "Best Idea," while Bernstein SocGen Group maintained a Market Perform rating with a $13.00 price target.

Hershey Upgraded as Fundamentals Strengthen Despite Headwinds

The Hershey Company (HSY) received a substantial vote of confidence from Goldman Sachs, which double-upgraded the stock from Sell to Buy and raised its price target to $222 from $170. This new target implies a potential upside of more than 19% from previous levels. Goldman Sachs analyst Leah Jordan posited that many of the existing risks, such as rising cocoa costs and tariffs, are now "fully priced into the stock." The upgrade is underpinned by emerging tailwinds, including improved market share trends in key confection categories like seasonal candy, mints, and sweets, alongside the company's historically strong pricing power. Analysts anticipate these factors to drive "outsized" earnings growth in fiscal year 2026. Hershey's shares responded positively, gaining over 3% in midday trading to approximately $192. Despite a 9% year-to-date gain, the stock still trails the broader S&P 500 index, which has advanced 22% over the same period. While Goldman Sachs has turned bullish, the broader analyst community remains cautious, with 17 out of 24 analysts still rating the stock as a 'Hold', and the average one-year price target from 22 analysts is $184.15. However, GuruFocus estimates a GF Value of $237.53, suggesting a potential 24.17% upside.

Apple Positioned as Leader in AI-Driven "Intelligence Revolution"

Bernstein SocGen Group initiated coverage on Apple (AAPL) with an Outperform rating and a $290.00 price target, positioning the tech giant as the "gateway to the Intelligence Revolution" driven by artificial intelligence (AI). The firm lauded Apple's strategy of integrating on-device AI directly into its products, enhancing security, privacy, and performance by keeping tasks local. Apple's extensive ecosystem of 2.35 billion active devices is seen as a significant advantage for leveraging AI capabilities. Furthermore, the recent Google remedies decision is viewed as removing a significant downside risk and opening opportunities to integrate Google's Gemini AI technology. Early data indicates strong initial demand for the iPhone 17 lineup, supported by robust carrier promotions, with Goldman Sachs noting extended lead times across all models and regions. Despite this positive outlook, Bernstein acknowledges that Apple has lagged rivals in AI development and Siri revamp, and cautions that poor execution in AI integration could pose a risk. The broader market implications for the IT hardware sector are substantial, with Bernstein projecting a $1.3 trillion market for enterprise inference by 2030, and Nvidia's CEO predicting AI infrastructure spending could reach $3-4 trillion by 2030. Financially, Apple's stock has underperformed broader markets in 2025, declining 4.5% year-to-date compared to a 12% gain for the S&P 500, partly due to concerns about its slow AI rollout. For its fiscal Q3 2025, Apple reported $94.0 billion in revenue, a 10% year-over-year increase, and diluted earnings per share (EPS) of $1.57, a 12% rise.

Market Implications and Forward Outlook

The divergent analyst calls highlight key themes influencing market segments. For Warner Bros Discovery, the immediate future is likely to be characterized by continued volatility tied to M&A speculation. Regulatory hurdles, particularly given Senator Warren's stance, remain a significant factor that could impede any proposed merger and impact the company's restructuring plans and financial health, as evidenced by a 1-year revenue growth decline of 4.9% and an Altman Z-Score in the distress zone. For Hershey, the positive re-evaluation suggests a potential for sustained growth, contingent on continued market share recovery and effective management of commodity costs. Investors will closely monitor cocoa prices and consumer spending patterns. Apple is positioned for long-term gains as the "intelligence revolution" unfolds, but the successful and timely integration of advanced AI features, particularly with the anticipated enhanced Siri, will be paramount. The broader IT hardware sector is expected to undergo a significant transformation as AI capabilities become more embedded across devices and enterprise solutions. The disparity in current stock performance and future projections underscores the importance of company-specific catalysts and broader industry trends in shaping investor strategies.

Expert Perspectives

The contrasting viewpoints from analysts underscore the complexities of current market dynamics.

TD Cowen on Warner Bros Discovery: "sometimes the best move is to admit you don't have a particular edge on a situation and move to the sidelines."

Senator Elizabeth Warren on the potential WBD/Paramount merger: "This deal would be a dangerous concentration of power over our media and news. It should be blocked."

Goldman Sachs on Hershey: "A core tenet of our prior bear thesis was centered around Hershey's market share losses... But they added that they are now 'more constructive' on the outlook."

Bernstein on Apple: "Apple is positioned to gain the most from on-device AI but is also most at risk if execution is poor."

These perspectives reflect a blend of caution, optimism, and strategic foresight, guiding investors through an evolving market landscape.