Deutsche Bank Upgrades R.H. Donnelley (RHD) to Hold
RHD Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank upgrades R.H. Donnelley (NYSE: RHD) from Sell to Hold. Price target $2.
Deutsche analyst says, "We are upgrading RHD from Sell to Hold after giving more credit to cost cuts and the opportunity to make a dent in leverage by buying back bonds on the open market at significantly discounted prices. While we are still negative on incumbent YP publisher structural trends and see no near-term easing of the cyclical headwinds on SME spending, we think these two factors slightly extend the duration until more acute credit problems, and increase the shares' option value...Downside risks: inability to cut costs, ad sales trends not lessening in CY09. Upside risks: ad sales declines lessen in 2H08, RHD executes significant cost cuts without a negative impact on usage or sales, or RHD successfully restructures debt with limited dilution."
R.H. Donnelley Corporation published and distributed print directories that provide local information to consumers.
Deutsche analyst says, "We are upgrading RHD from Sell to Hold after giving more credit to cost cuts and the opportunity to make a dent in leverage by buying back bonds on the open market at significantly discounted prices. While we are still negative on incumbent YP publisher structural trends and see no near-term easing of the cyclical headwinds on SME spending, we think these two factors slightly extend the duration until more acute credit problems, and increase the shares' option value...Downside risks: inability to cut costs, ad sales trends not lessening in CY09. Upside risks: ad sales declines lessen in 2H08, RHD executes significant cost cuts without a negative impact on usage or sales, or RHD successfully restructures debt with limited dilution."
R.H. Donnelley Corporation published and distributed print directories that provide local information to consumers.
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