Upfront Central: Complete Upfront Coverage from B&C
Deutsche Bank and Miller Tabak & Co. raised price targets for Discovery
Communications this morning, Apr. 9, thanks to a strong upfront presentation
from the factual giant.
Miller Tabak analyst, David
Joyce, increased his targets after attending the celebrity-fuelled show at Lincoln Center which featured appearances by
Oprah Winfrey, Mike Tyson and Shania Twain. The event was attended by many
other Wall Street executives, agency buyers, marketers and press.
Joyce said that he was
increasing Discovery's short term target to $39 from $36 as, "We believe
Discovery's unique edu-tainment, celebrity-driven, and visually appealing
content and worldwide awareness should continue to drive advertiser enthusiasm
for well-defined network brands that are still generating viewership gains."
In a note to investors he said,
"There are too many interesting content highlights to mention, but some of the
wow-factors, in addition to the current BBC
co-production miniseries [Life], include
the new 5-year, 60-episode Curiosity
series driven by company founder John Hendricks; the Oprah Winfrey Network and
her participation and celebrity attraction; and the new 3D network launch."
Separately,
Deustche Bank raised its price target by a dollar to $38 and reaffirmed a buy
for the top tier cable content giant. Discovery Communications reports first
quarter 2010 results on Friday, Apr. 30.
Deutsche Bank Media Analyst Doug Mitchelson, predicts that the company's second quarter scatter versus scatter market will be up 10% year on year. "Buzz for the Oprah Winfrey Network continues to build," the analyst told investors in a note Apr. 9,"though it remains difficult to project potential profits this early." The new network is expected to launch on January 1, 2011.
