Discovery: Jefferies upgrades stock
(CercleFinance.com) - Broker Jefferies has upgraded its recommendation on Discovery from "hold" to "buy," raising its target price from 26 dollars to 34 dollars, saying the market is underestimating the relative stability and free cash flow generation of the pay-TV group.
"We see several opportunities that could boost DISCA's FCF," it says, for example citing stronger stronger US distribution growth and the addition to a VMVPD offering.
Jefferies also points to the prospect of acceleration in growth in advertising in the US, an upside potential for synergies made and the possible resumption of share buybacks earlier than expected.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We see several opportunities that could boost DISCA's FCF," it says, for example citing stronger stronger US distribution growth and the addition to a VMVPD offering.
Jefferies also points to the prospect of acceleration in growth in advertising in the US, an upside potential for synergies made and the possible resumption of share buybacks earlier than expected.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.