UPDATE: ISI Group Initiates Coverage on Discovery Communications on Long Growth Runway, Premium Valuation
In a report published Wednesday, ISI Group analyst Vijay Jayant initiated coverage on Discovery Communications (NASDAQ: 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.
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