SPOT - Spotify Discovery Activision gain as Bernstein lifts to Neutral

Spotify (NYSE:SPOT) is 2.4% higher after Bernstein analyst Todd Juenger boosted the stock to Market Perform from a previous Underperform. That's based on a sunnier outlook for long-term gross margins. He's also resuming coverage of other media and videogame stocks, and upgrading Discovery (DISCA +4.7%) and Activision Blizzard (ATVI +1.9%) to Market Perform from Underperform. Discovery is undervalued, he suggests - "the market is already pricing the stock for the company to miss its streaming revenue guide, EBITDA guide, or both" in Wednesday's earnings - and there's balanced risk-reward in Activision Blizzard, which reports tomorrow. He has a $26 price target on Discovery, implying 6% upside. And a price target of $82 on ATVI implies 3% upside. Consensus expectations for Activision Blizzard are for EPS of $0.70 on bookings of $1.88 billion.

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Spotify, Discovery, Activision gain as Bernstein lifts to Neutral