Discovery shares, which have been in a funk for months, roared back to life Friday, 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.
ViacomCBS is the latest media company to be spotlighted as a possible takeover target amid the heightened M&A speculation following the WarnerMedia-Discovery tie-up. ViacomCBS shares, which have lost 35% over the past three months, rose 3% in midday trading on Thursday after Bank of America Merrill Lynch analyst Jessica Reif Ehrlich upgraded ViacomCBS to buy from underperform, citing the potential for an acquisition.
