Estimates Raised On DISCA To Reflect Strong 3Q Trends

JP Morgan has published a research report on Discovery Communications DISCA as it is expected that Discovery will continue to see strong top-line trends in 3Q. In its research report, JP Morgan writes "We are raising US Networks Q3 advertising revenue growth estimates but lowering our Adjusted OIBDA forecast to reflect timing of marketing spending. We believe that aggregate audience growth of 13.6% drove advertising revenue increase of 14.0% (we expected 11.0% growth previously). We now believe that Adjusted OIBDA in the quarter will be $336M, down from the $343M we expected previously, with the difference due to timing of marketing spending associated with new programming." JP Morgan maintains its Overweight rating and has raised the price target from $43.50 to $50. Discovery Communications closed yesterday at $43.28.