UPDATE: Bernstein Upgrades Discovery Communications (DISCA) to Market Perform

Bernstein analyst Todd Juenger upgraded Discovery Communications (NASDAQ: DISCA) from Underperform to Market Perform with a price target of $26.00 (from $28.00).

The analyst comments "At DISCA, we continue to have high conviction that these businesses face a long list of very serious concerns, including: the legacy business is facing insurmountable structural pressure, the streaming future is riddled with risk for this set of brands, including the daunting complications of the Warner Media integration and rationalization. However, the market seems to also share those concerns, and has driven the stock price down to a level where we can no longer argue the risk/reward for investors skews significantly negative from here. We believe the market is already pricing the stock for the company to miss its streaming revenue guide, EBITDA guide, or both. As the closing date approaches, the key question for investors from a catalyst perspective is: if the company takes down their guide, will that be bad for the stock (confirming tougher business conditions and lower financial results) or good for the stock (clearing the overhang, regaining investor confidence in a believable outlook on which to price the stock)? We lower our target price from $28 to $26, while upgrading the stock to Market-Perform."

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 $23.44 yesterday.

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