MKM Partners analyst Eric Handler lowered the firm's price target on Discovery to $35 from $38 but keeps a Buy rating on the shares. The analyst is lowering his FY20 EPS view by 49c to $3.34 after its Q4 results and FY20 outlook, with U.S. adjusted OIBDA margin set to contract to 56.9% from 58.1% due to higher investment spending for the Food Network Kitchen, Magnolia and BBC/DTC services. Handler believes however that losses from DTC investments will peak in 2020 and buybacks should accelerate. Handler further notes that Discovery's valuation of 15% of free cash flow yield does not adequately reflect its "ability to adapt to the changing global media landscape" or the uniqueness of its DTC services.