Nomura Securities Maintains a 'Neutral' on Discovery Communications (DISCA); Q2 Review
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Price: $24.43 --0%
Rating Summary:
12 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Discovery Communications (NASDAQ: DISCA) price target of $50.00 (from $49.00).
Analyst, Michael Nathanson, said, "Discovery reported 2Q adjusted EPS of $0.76, $0.06 above our estimate. However, to us, the headline EPS beat was less important than the underlying drivers of growth in the quarter and forward comments about domestic advertising. Ratings momentum at the company’s flagship U.S. networks softened after a strong first quarter and will likely struggle until post-Olympic new programming launches. For the year, we are lowering domestic advertising by 60bp to 8.5%. Internationally, we project robust 2012E ad growth of 14%, with growth ex-FX in the high teens for 2H12. All in, we are leaving our CY12 EBITDA growth essentially unchanged at 12%, but the stock is now a 4Q story with forecasted EBITDA growth of 20%. Given the relatively high P/E multiple and increasingly higher expectations, we continue to believe the stock is largely fairly valued...We see more earnings and multiple upside at Buy-rated News Corp (Nasdaq: NWS)(Nasdaq: NWSA), Disney (NYSE: DIS) and Viacom (Nasdaq: VIA)(Nasdaq: VIAB)."
F12E EPS from $2.75 to $2.82; F13E EPS at $3.37.
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 $50.63 yesterday.
Analyst, Michael Nathanson, said, "Discovery reported 2Q adjusted EPS of $0.76, $0.06 above our estimate. However, to us, the headline EPS beat was less important than the underlying drivers of growth in the quarter and forward comments about domestic advertising. Ratings momentum at the company’s flagship U.S. networks softened after a strong first quarter and will likely struggle until post-Olympic new programming launches. For the year, we are lowering domestic advertising by 60bp to 8.5%. Internationally, we project robust 2012E ad growth of 14%, with growth ex-FX in the high teens for 2H12. All in, we are leaving our CY12 EBITDA growth essentially unchanged at 12%, but the stock is now a 4Q story with forecasted EBITDA growth of 20%. Given the relatively high P/E multiple and increasingly higher expectations, we continue to believe the stock is largely fairly valued...We see more earnings and multiple upside at Buy-rated News Corp (Nasdaq: NWS)(Nasdaq: NWSA), Disney (NYSE: DIS) and Viacom (Nasdaq: VIA)(Nasdaq: VIAB)."
F12E EPS from $2.75 to $2.82; F13E EPS at $3.37.
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 $50.63 yesterday.
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