Netflix says past year 'testament' to company's approach » 16:1001/1901/19/21
NFLX, DIS, DISCA, VIAC, AAPL, T, CMCSA
Netflix said in its…
Netflix said in its quarterly investor letter: "It's a great time to be a consumer of entertainment. There are a wealth of options ranging from linear TV to video gaming to user generated content on YouTube and TikTok. We continue to work hard to grow our small share of screen time against these major competitors. Discovery recently launched its streaming service. Disney+ is expanding in new countries and with more content. ViacomCBS will be unveiling its plans for Paramount+ in 2021. Combined with the launch of AppleTV+, WarnerMedia's HBO Max, and NBCUniversal's Peacock streaming services, this signifies that these companies all recognize the future is streaming entertainment, a vision we have been working towards since inception. Our strategy is simple: if we can continue to improve Netflix every day to better delight our members, we can be their first choice for streaming entertainment. This past year is a testament to this approach. Disney+ had a massive first year (87 million paid subscribers!) and we recorded the biggest year of paid membership growth in our history."
Fly Intel: Top five analyst downgrades » 09:5301/1901/19/21
VIAC, DISCA, PTON, TTWO, TOT
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. ViacomCBS (VIAC) double downgraded to Underweight from Overweight at Barclays with analyst Kannan Venkateshwar saying that even if he assumes "significant acceleration" in growth in the coming five years for ViacomCBS's streaming service and uses Netflix's (NFLX) multiple, there isn't much upside versus present stock levels. 2. Discovery (DISCA) downgraded to Underweight from Equal Weight at Barclays with analyst Kannan Venkateshwar saying he finds the optimism around some of these streaming launches like Discovery+ to be premature. 3. Peloton (PTON) downgraded to Sell from Neutral at UBS with analyst Eric Sheridan saying the stock is "emblematic of a market that values growth over any semblance of valuation that can be justified" on a multiple year view based on fundamentals. 4. Take-Two (TTWO) downgraded to Neutral from Buy at UBS with analyst Eric Sheridan saying that while he makes no changes to his operating estimates or multiples, he downgrades the stock to reflect a "more balanced risk/reward" after a 37% run-up in the stock price over the past six months. 5. Total (TOT) downgraded to Market Perform from Outperform at Cowen with analyst Jason Gabelman downgraded saying he sees a multi-year patch of in-line performance while the stock trades at an elevated premium to peers. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Discovery price target raised to $41 from $33 at Credit Suisse » 07:5101/1901/19/21
Credit Suisse analyst…
Credit Suisse analyst Douglas Mitchelson raised the firm's price target on Discovery to $41 from $33 and keeps an Outperform rating on the shares. The analyst notes that consistent feedback across his Media coverage from managements and ad buyers suggests better-than-expected advertising in Q4, including for on demand platforms like Discovery Go. In addition, while not the 70bp improvement seen in Q3, he expects cord cutting was stable in Q4.
Discovery added to 'Tactical Outperform list' at Evercore ISI » 07:2201/1901/19/21
Evercore ISI analyst…
Evercore ISI analyst Vijay Jayant raised the firm's price target on Discovery to $35 from $30 and keeps an In Line rating on the shares while also adding the stock to the firm's "Tactical Outperform List." The early read on Discovery+ app download data is consistent with about 750,000 net additions through week one, said Jayant, who sees earnings upside in Q4 from advertising outperformance.
Discovery downgraded to Underweight from Equal Weight at Barclays » 06:3301/1901/19/21
Barclays analyst Kannan…
Story temporarily locked.
Fly Intel: Top five analyst upgrades » 09:5201/1501/15/21
HPE, RL, SNAP, DISCA, AAXN
Catch up on today's…
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. HP Enterprise (HPE) upgraded to Overweight from Neutral at JPMorgan with analyst Paul Coster saying the company posted "two encouraging quarters" in the second half of fiscal 2020, executed on a cost-containment program, made a "well-timed" acquisition in the SD-WAN space and is pivoting into a recovery in enterprise IT spending in 2021. 2. Ralph Lauren (RL) upgraded to Outperform from Sector Perform at RBC Capital with analyst Kate Fitzsimons noting that the stock was among the biggest laggards in 2020 with a multiple expansion of 4 turns vs. 13 seen by its peers, but she believes that 2021 will see the company outperform as EPS revisions move higher. 3. Snap (SNAP) upgraded to Buy from Neutral at MoffettNathanson with analyst Michael Nathanson saying he continues to believe Snap results will "surprise on the upside" as he's 15% above consensus on 2024 revenue and 30% above consensus on 2024 non-GAAP operating income. 4. Discovery (DISCA) upgraded to Buy from Neutral at MoffettNathanson with analyst Michael Nathanson saying he is more positive on Discovery's ability to make the "digital pivot necessary" to continue to grow sales and EBITDA in the longer-term after factoring in new Discovery+ projections. 5. Axon (AAXN) upgraded to Overweight on new market penetration at Morgan Stanley with analyst James Faucette saying recent U.S. Federal contract wins signal faster than expected penetration into one of "many new market opportunities" he sees for Axon, said Faucette, who thinks Corrections, International, and broader public safety software can follow. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Discovery upgraded to Buy with $45 price target at MoffettNathanson » 06:2201/1501/15/21
MoffettNathanson analyst Michael Nathanson upgraded Discovery to Buy from Neutral with a price target of $45, up from $23. The analyst is more positive on Discovery's ability to make the "digital pivot necessary" to continue to grow sales and EBITDA in the longer-term after factoring in new Discovery+ projections. Nathanson forecasts Discovery+ will reach 17M subscribers by the end of 2021 and continue to grow "strongly" reaching 50M subscribers by 2025.
Discovery upgraded to Buy from Neutral at MoffettNathanson » 06:0301/1501/15/21
MoffettNathanson analyst Michael Nathanson upgraded Discovery to Buy from Neutral with a $45 price target.
Discovery price target raised to $40 from $35 at RBC Capital » 07:0601/1301/13/21
RBC Capital analyst…
RBC Capital analyst Kutgun Maral raised the firm's price target on Discovery to $40 from $35 and keeps an Outperform rating on the shares after hosting investor meetings with CFO Gunnar Wiedenfels and EVP of Global Investor Strategy Andrew Slabin. Maral walked away incrementally more bullish on the ability of discovery+ to differentiate itself in an increasingly crowded streaming market and become an additive avenue for IP monetization and says Discovery remains the firm's preferred pick across Media.
|Over a week ago|
Discovery price target raised to $36 from $28 at Citi » 06:3501/0601/06/21
Citi analyst Jason…
Citi analyst Jason Bazinet raised the firm's price target on Discovery to $36 from $28 and keeps a Buy rating on the shares. The analyst updated his model to reflect recent developments.