Citigroup Maintains Buy on Discovery Communications After CFO Naming

Citigroup has published a research report on Discovery Communications

after the company named Andrew Warren as its new CFO Monday evening. In the report, Citigroup writes, "Discovery announced the appointment of Andrew Warren as CFO. Mr. Warren will be joining the firm on March 26th, 2012, succeeding Brad Singer. Mr. Warren will lead Discovery's global financial functions and strategies, and will direct all accounting treasury, budgeting and tax activities. Mr. Warren will represent the joint ventures (OWN, the Hub, 3net), and will also be responsible for CSS Studios. According to an SEC filing, Mr. Warren will be paid $900k during his first year. Annual incentive compensation will equal 100% of the base salary. During the first 60 days, Mr. Warren will likely receive non-qualified stock options with a target value of $1 million. Mr. Warren must move to the D.C. area by 2013 to be considered for an equity award in 2014." Citigroup maintains its Buy rating and $46 price target on Discovery Communications, which is currently trading up $0.71 from yesterday's $41.56 closing price.