Deutsche Bank Upgrades CTC Media to Buy (CTCM)

Noting that as "ad market gains momentum and market outlook improves, so do earnings," Deutsche Bank upgraded CTC Media, Inc. (NASDAQ: CTCM) to a Buy rating. Deutsche Bank raised its target price to $22, from $17.

CTC Media, Inc. operates three Russian television networks. Analysts at Deutsche Bank believe that "CTC Media offers the best combination of value and growth among peers."

Risks to the downside include "macroeconomic environment both globally and in Russia, particularly weaker-than anticipated levels of personal consumption, lower-than- anticipated ratings and higher-than-expected expenditure on content."

Deutsche Bank "expect[s] revenue growth to exceed market medium-term as the company monetizes its investments into two niche Russian channels, Domashny and DTV over the next two years, having a direct positive effect on margins and earnings."

Shares of CTC Media are higher by $0.86, or 4.8%, this morning, to $18.75.