VIACA - Viacom Discovery drop as Macquarie cuts to Underperform after mass rallies

ViacomCBS and Discovery each ended the day somewhat lower - [[VIAC]] -4.1%, [[VIACA]] -4.3%, [[DISCA]] -2.3% - after Macquarie cut the names to Underperform for running too far too fast. The overall market is up nearly 6% for 2021, but [[VIAC]] is up 158% in that time frame, and [[DISCA]] up 152%, as each has recently made its big streaming play: Paramount Plus and Discovery Plus respectively. “Both companies have made bold moves in (direct-to-consumer), and been rewarded with outsized share price moves,” Macquarie's Tim Nollen says. He's setting the price target on [[VIAC]] to $78, implying 15.5% downside. And a target of $52 on [[DISCA]] implies 30% downside.

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Viacom, Discovery drop as Macquarie cuts to Underperform after mass rallies