UPDATE: Pivotal Research Group Downgrades Discovery Communications Ahead of Quarterly Earnings

In a report published Monday, Pivotal Research Group analyst Brian Wieser downgraded Discovery Communications (NASDAQ: DISCA) from Hold to Sell, and lowered the price target from $73.00 to $70.00.

In the report, Pivotal Research Group noted, “We are updating our Discovery Communications model ahead of quarterly earnings and downgrading our recommendation to Sell. With top and bottom-line expectations inline with consensus, and a revised risk-free rate (2.5%, vs. 2.3%, consistent with changes to other companies in our coverage universe), our revised price target is now $70, vs. $73 previously. At the same time, the stock is up substantially in recent weeks, up by 11% in the last month (vs. 4% gains for the S&P 500). Our view is that this level of market outperformance is not sustainable given the relatively lofty valuation it began the year with.”

Discovery Communications closed on Friday at $85.07.