Morgan Joseph Upgrades Central European Media Enterprises (CETV) to Buy; Financial Risk Mitigated

July 6, 2009 8:35 AM EDT

Morgan Joseph upgrades Central European Media Enterprises (Nasdaq: CETV) to Buy. Price target $25.

Morgan analyst says, "Market stabilization and reduction of financial risk warrant share upgrade...We believe the broad markets in which CETV operate have reached a bottom sooner than we had expected. In our view, we will see the difference in Q409 results, which should show a smaller decline than we saw in Q109 and are likely to see this quarter. Time Warner's (NYSE: TWX) 31% investment as well as the agreement reached last week to sell 49% of its stake in the Ukraine to CME shareholder and director Igor Kolomoisky significantly mitigate financial risk...We continue to believe CME is one of the best positioned media companies in the world with its dominant broadcasting franchise combined with its emerging Internet properties."

"Weakening dollar should help CME's reported results. We are raising our revenue and EBITDA estimate $230.8mm and $66.7mm from $219.7mm and $62.0mm, respectively."

To see more analyst ratings on CETV Click Here.

Central European Media Enterprises Ltd (CME) invests in, develops and operates commercial television channels in Central and Eastern Europe.

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