J.P. Morgan Long Term Positive On CTC Media (CTCM)

J.P.Morgan Chase & Co is long term positive on shares of CTC Media CTCM after it was announced on Friday that CTC Media would start selling advertisements in-house. In a note to clients, J.P. Morgan writes, "CTC network’s audience share has gradually improved over 2009 and was stable yoy in the 1Q10, which suggests that its current programming is performing well. In addition, Domashny’s audience share appears to be stabilizing, while DTV’s is showing some improvement ytd. However we believe that some of the market share gains of 2009 are unsustainable - they were allowed by the fact that VI started 2009 with more long term contracts and had more bargaining power with advertisers. Indeed, CTCM has for several quarters guided towards a lower power ratio, saying that the current level could not be sustained. We have already reflected this in our estimates." Shares of CTC Media are down 25 cents to $18.40 in early trade.