UPDATE: ISI Group Initiates Coverage on Discovery Communications with Neutral Rating, $87 PT on Long Growth Runway, Premium Valuation

In a report published Wednesday, ISI Group analyst Vijay Jayant initiated coverage on Discovery Communications DISCA with a Neutral rating and $87.00 price target. In the report, ISI Group noted, “We are initiating coverage of Discovery Communications (DISCA/K) shares with a Neutral rating (for the “A” shares) and an $87 price target for 2014. There is currently a 9% valuation spread between the Class A (1-vote) and Class C (no-vote DISCK) shares, which is higher than the historical range. We prefer the DISCK class over DISCA, as we are unconcerned about having no vote, given how the Board/management has run the company for growth and capital returns for all shareholders.” Discovery Communications closed on Tuesday at $77.94.