Improved ratings at OWN has Sanford C. Bernstein media analyst Todd Juenger bullish on Discovery Communications, which co-owns the cable channel with Oprah Winfrey.
In a Monday report, Juenger raised his target price for Discovery shares to $76 and pointed to OWN and smaller Discovery networks including Animal Planet, ID and Science as key reasons. Ratings for those networks are up.
Although those channels are still not nearly as popular as Discovery or TLC, Juenger notes that, "we feel much better about a company with a portfolio of a half-dozen solid networks as a opposed to a company of hyper-important flagship networks."
With regards to OWN, Juenger said it is becoming a "go-to destination for celebrity personalities to address PR issues." Indeed, Lance Armstrong is expected to come clean about doping in an interview with Winfrey on OWN on Thursday.