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WarnerMedia deal will hold back Discovery's stock, MoffettNathanson says in downgrade

In this photo illustration the HBO Max and Discovery Communications logo seen displayed on a smartphone.
Rafael Henrique | LightRocket | Getty Images

Discovery took a big swing in striking a deal with AT&T to merge with WarnerMedia, but shareholders will have to wait to see if the result is a home run, according to MoffettNathanson.

Analyst Robert Fishman downgraded the stock to neutral from buy, saying in a note to clients that the combination with HBO's parent company lowers Discovery's upside in the near term. Shares of the company have dropped nearly 12% since the deal was announced last week.

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