UBS Maintains a 'Neutral' on Discovery Communications (DISCA); Strong 4Q Ad Growth Continues Into 1Q

UBS maintains a 'Neutral' on Discovery Communications (NASDAQ: DISCA) price target raised $2 to $45.

UBS analyst says, "4Q ad rev growth of 17% in the U.S. and 19% int’l (ex. F/X) were ahead of our +14%/ +12%, respectively. However, OIBDA of $498M was below our $533M (Street: $524M), w/$20M related to content charges which we were not modelling. Mgmt commented the ad market remains strong to date in 1Q - DISCA continues to post industry leading ad growth. We are adj. our ‘12E rev/OIBDA/EPS to $4.48B/$2.10B/$2.71 (vs. prior $4.43B/$2.10B/$2.79), with the biggest change below the line for OWN-related/other losses ($85M loss vs. prior $32M)." (UBS raises FY13 from $3.30 to $3.32)

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 $44.94 yesterday.

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