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Pivotal Research Sticks to Its Sell Rating for Discovery Inc (DISCA)


Pivotal Research analyst Brian Wieser reiterated a Sell rating on Discovery Inc (DISCA) today and set a price target of $27. The company’s shares closed yesterday at $33.80, close to its 52-week high of $34.89.

Wieser wrote:

“We continue to rate Discovery stock Sell. Discovery Communications reported tepid underlying growth trends for 3Q18 with company-wide pro forma revenues up +2%. Adjusted pro forma OIBDA was up +18%, aided by ongoing operating improvements, significant restructuring activities – whose costs have totaled $652mm year-to-date, not including $79mm of transaction and integration costs, well ahead of the company’s prior estimate of $600mm for the year – as well as the absence of Bundesliga costs because of the deconsolidation of the company’s German assets. Adjusted EPS came in at $0.52.”

According to TipRanks.com, Wieser is a 5-star analyst with an average return of 11.7% and a 76.1% success rate. Wieser covers the Services sector, focusing on stocks such as Interpublic Group of Companies, Nielsen Holdings, and 21st Century Fox.

Currently, the analyst consensus on Discovery Inc is a Moderate Buy with an average price target of $33.92.

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Based on Discovery Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $2.84 billion and net profit of $210 million. In comparison, last year the company earned revenue of $1.66 billion and had a net profit of $218 million.

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Discovery, Inc. is a media company, which engages in the provision of content across distribution platforms and digital distribution arrangements. It operates through the following segments: U.S. Networks, International Networks, and Education and Other.