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Deutsche Bank Upgrades CTC Media (CTCM) to Buy; Fundamentally Attractive for Long-Term Growth

December 29, 2009 6:56 AM EST
CTCM Hot Sheet
Rating Summary:
    0 Buy, 5 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank upgrades CTC Media (Nasdaq: CTCM) to Buy. Price target increased to $17.

Deutsche analyst says, "We incorporate better-than-expected operational performance and effects of recent ad law changes into our model, which suggest that the stock remains fundamentally attractive as longer-term growth potential in advertising outweighs the near-term effects of competitive pricing pressure related to changes in the selling structure of the market. We recommend using potentially negative news flow related to the new law to Buy the stock."

"We have incorporated a number of changes to our model: CTC Media’s operational excellence led us to upgrade our 2009-2010F earnings, while incorporating stiffer competition from recent changes in legislation led us to downgrade our 2011-2012F earnings. We roll over our estimates to 2011 and remove the 25% discount to target multiples...While uncertainty surrounding the consequences of new legislative changes remains a key risk, we suggest using potential related weakness in the share price to Buy the stock."

To see all the upgrades/downgrades on shares of CTCM, visit our Analyst Ratings page.

CTC Media, Inc. operates three Russian television networks.

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