Benchmark Cuts Price Target on Meredith Corp (MDP) Following Publishers Information Bureau Report

Benchmark is maintaining its Hold rating on shares of Meredith Corp (NYSE: MDP) and is cutting its price target from $33 to $27 following the Publishers Information Bureau Q3 magazine industry advertising report.

The company's magazines posted a 8 percent decline in ad revenues and a 7 percent decline in ad pages. MDP's Better Homes and Gardens was the worst performer with a 10 percent decline in ad revenues and a 13 percent decline in pages. Meredith Corp's Traditional Home mag helped lower the decline as its posted a 26 percent increase in ad revenues and a 40 percent increase in pages.

An analyst at Benchmark comments, "PIB magazine and pages do not represent actual company numbers, but the weakness in Meredith’s PIB ad revenues and pages declines could suggest that Meredith’s FY1Q12 magazine ad revenues may be down at the higher end of the mid-single decline forecast by management."

For Q1 of fiscal 2012, the firm estimates EPS of $0.47 as EPS for the fiscal year should be $2.63.

For more ratings news on Meredith Corp click here and for the rating history of Meredith Corp click here.

Shares of Meredith Corp closed at $24.30 yesterday.

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