Discovery Communications In Play With 'Harley & the Davidsons' Debut

Discovery Communications Inc. (NASDAQ: DISCA) is scheduled to debuts the ‘Harley & the Davidsons’ series on September 5. The subject matter of Discovery Communications’ first scripted original series “matches up perfectly” with the company’s main audience, Loop Capital Markets’ David W. Miller said in a report.

Analyst Miller maintained a Buy rating on the company, with a price target of $31. He mentioned that the series, which is a historical account of the story of Harley-Davidson Inc (NYSE: HOG), is perfect for Discovery Communications’ “bread 'n butter audience of men aged 25-34.”

Strong EPS Growth

The company had raised its EPS growth guidance for the rest of 2016 from high-teens to at least 20 percent. Management had already reiterated the guidance for constant currency FCF growth of high-teens for 2016.

“No other large-cap media name is having a year like that, not even our top pick CBS (NYSE: CBS) [Rated: Buy], and yet the stock continues to trade at a low double-digit multiple,” Miller commented.

Changing With The Times

While the Street has “an ever-increasing tone of negativity,” for Discovery Communications, the company seems to be “changing with the times,” other its peers in the space, the analyst mentioned. He elaborated that the company had entered sports programming with the acquisition of Eurosport and has now got into original programming, with the ‘Harley & the Davidsons’ set to debut next week.

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