Discovery Stock Leaps 17% After Wall Street Analyst Says WarnerMedia Merger Can Yield “The Most Dynamic Global Media Company”
deadline.comDiscovery shares, which have been in a funk for months, roared back to life today, jumping 17% on heavy trading volume after a validation from a veteran Wall Street analyst.Bank of America’s Jessica Reif Ehrlich upgraded Discovery shares to a “buy” from “neutral” and rhapsodized about its potential in a note to clients.
She also raised her 12-month price target to $45 from $34. The stock responded by climbing to $30.06 by the closing bell, its highest level since last July.
Trading volume was nearly seven times normal levels.On a mixed day overall for stocks, the boost for Discovery appeared to help ViacomCBS.
As another TV heavyweight seen as an M&A candidate, it saw its shares rise 8% to $35.39.Discovery and WarnerMedia are poised to combine in a $43 billion merger, forming a new entity to be led by current Discovery CEO David Zaslav.
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