Nomura Securities Downgrades Discovery Communications (DISCA) to Neutral

Nomura Securities downgraded Discovery Communications (NASDAQ: DISCA) from Buy to Neutral with a price target of $36.00 (from $44.00).

Analyst Anthony DiClemente commented, "We are downgrading DISCA to a Neutral rating owing to four key concerns: 1) Slowing international ad growth including headwinds from F/X, Russia, and the core; 2) potential US affiliate fee slowdown due to distributor consolation and other affiliate fee growth concerns; 3) ongoing mixed results for US TV ratings (both sector-wide and company-specific); and 4) valuation relative to growth, as we now model Discovery’s EBITDA growth as more in line with its media peers. Although the stock is down 12% since our launch in January, it is up 11% from its 52 week low on 10/15/14 and as such, we believe investors should take this opportunity to move to the sidelines."

For an analyst ratings summary and ratings history on Discovery Communications click here. For more ratings news on Discovery Communications click here.

Shares of Discovery Communications closed at $37.02 yesterday.

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