Discovery’s new streaming service called Discovery Plus (discovery+) is being launched in the US on Jan. 4 on platforms including Amazon Fire TV and Roku, Reuters reported citing a source familiar with the company.
According to the report, Discovery’s (DISCA) streaming service will also be made available to Vodafone TV and mobile customers in 12 markets of Europe.
In the Reuters report it was added that AT&T’s HBO Max and Comcast’s Peacock streaming services were not accessible through Roku or Amazon Fire TV at the time of their respective launches, which hindered their growth.
Meanwhile, discovery+ has already been launched in the U.K. and Ireland and the company is planning to roll out the service to more than 25 international markets in 2021.
In the US, the company plans to charge $5 per month with commercials and $7 per month without ads. The service will have a mix of library shows and movies and new, exclusive originals. In addition, discovery+ will be streaming free for Verizon customers for as long as a year. (See DISCA stock analysis on TipRanks)
On Dec. 11, Deutsche Bank analyst Bryan Kraft raised the stock’s price target to $35 (16.3% upside potential) from $30 and maintained a Buy rating, reflecting the launch of discovery+. In a note to investors, Kraft said that they don’t need to underwrite discovery+ “being a runaway success in order to be constructive on the stock and make money over the next 12 months.”
From the rest of the Street, the stock scores a cautiously optimistic outlook on the stock. The analyst consensus of a Moderate Buy is based on 4 Buys, 4 Holds and 1 Sell. The average analyst price target of $31.29 implies upside potential of about 4% to current levels. Shares have declined 8.1% year-to-date.