Bank of America Merrill Lynch Reiterates Buy Rating, $71 PT on Discovery Communications

In a report published Monday, Bank of America Merrill Lynch reiterated its Buy rating and $71.00 price target on Discovery Communications

. BofA Merrill Lynch noted, “International acquisitions are a known part of DISCA's growth strategy and we are not surprised to see management focused on the European market. Although we are somewhat leery of investments in more competitive non-fiction genres of programming (e.g. sports and general entertainment), we believe earnings accretion, financial stability and the strategic enhancements potentially afforded by these deals more than offset the risks. A commitment to continued solid capital returns is also positive, in our view. Reiterate Buy.” Discovery Communications closed on Friday at $60.82.