Morgan Joseph Downgrades Central European Media Enterprises (CETV) to Hold; Valuation Call

September 1, 2009 8:07 AM EDT

Morgan Joseph downgrades Central European Media Enterprises (Nasdaq: CETV) from Buy to Hold.

Morgan analyst says, "We are lowering our rating on CETV shares to HOLD from BUY given the stock's sharp rise since it reported 2Q09 results. We continue to believe the long-term prospects of the company remain positive given its leading position in almost all of its markets, the stabilization in the macro economy in Central Europe, and the strong management team that has consistently delivered impressive results before the global economic crisis. However, with the stock trading around 10.0x 2010E EV/ EBITDA, well ahead of current comps level, we believe CETV shares are fairly valued for now...For 2009, we are tweaking our sales estimate and segment EBITDA to $707.9mm and $142.9mm, respectively, from $689.5mm and $135.9mm. For 2010, we estimate $755.6mm and $219.1mm, respectively. This is an increase from our prior estimates of $736.3mm and $211.0mm."

To see more analyst ratings on CETV Click Here.

Central European Media Enterprises Ltd., together with its subsidiaries, invests in, develops, and operates commercial television channels in central and eastern Europe.

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