Benchmark Capital Downgrading Time Warner and Viacom On Slowing Economy (TWX, VIAB)

Benchmark Capital is downgrading shares of Time Warner (NYSE: TWX) and Viacom (NYSE: VIAB) to Hold from Buy on a slowing economy. Benchmark cut the price target on Time Warner to $34 from $40, and Viacom was cut to $37 from $42.

In the research report, Benchmark Capital says, "We downgrade our rating from Buy to Hold and lower our estimates for Time Warner (NYSE: TWX)) [and Viacom (NYSE: VIAB)] as a stalling economic recovery could hinder advertising and home entertainment sales. We are shifting our Media sector rating from Overweight to Market Weight because persisting high levels of unemployment, weak housing demand and low consumer confidence combined with increasingly difficult comparisons could limit growth."

Shares of Time Warner lost 89 cents yesterday to close at $30.83, while Viacom lost 67 cents to close at $32.28.