Focus Media (FMCN) is Piper Jaffray's Top Pick

Piper Jaffray reiterates Focus Media (Nasdaq: FMCN) as its "Top Pick". The firm has a Buy rating and $82 price target on the stock.

The firm recently had a meeting with Tan Zhi, Focus Media's newly appointed CEO, and Daniel Wu, the Company's CFO. Piper Jaffray said that the Company indicated that there are no signs of an advertising slowdown related to the U.S.'s macro problems. Furthermore, the firm said that if a slowdown in the Chinese economy did occur, Focus Media would likely continue to take market share from traditional advertisers such as TV, radio and newspapers.

One of the most interesting points in the research report was in regards to concerns about Focus Media's founder, Jason Jiang. After Mr. Jiang stepped down from his position of CEO, investors began speculating that he might fill a less prominent role or possibly even leave the Company. Shares of Focus Media sold-off more than 10% last week due to this speculation. After Piper Jaffray's meeting with management, the firm confirmed that these worries are unwarranted as executives have made it clear that Mr. Jiang continues to work full-time and is very involved in management decisions.

The firm called Dr. Tan's appointment a way for "Mr. Jiang to concentrate on strategic initiatives in the high growth and emerging business segments including online, mobile, and digital TV."

Focus Media Holding Limited operates out-of-home advertising network using audiovisual television displays in the People's Republic of China.

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