UPDATE: Nomura Initiates Coverage on Discovery Communication at Buy, Establishes $100.00 PT

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on Discovery Communication, Inc.

with a Buy rating, establishing a $100.00 price target. According to the report, given its expertise in leveraging content across regions, it is believed DISCA is positioned to grow revenue over the next three years faster than any other company in Nomura's Media group. “As the leader in non-fiction content, DISCA is particularly well positioned for international growth (advertising and affiliate), which hedges it against slowing cable TV subscriber growth in the U.S. Discovery's U.S. affiliate renewal cycle suggests a powerful acceleration in affiliate fees through 2016E,” the report noted. “Outsized FCF generation bodes well for continued returns of capital and/or strategic acquisitions.” DISCA closed Tuesday at $82.46.