UPDATE: Deutsche Bank Downgrades Central European Media Enterprises to Hold

Deutsche Bank has published a research report on Central European Media Enterprises

and has downgraded the company from Buy to Hold based on softness in the ad markets. In the report, Deutsche Bank writes, "Given the continued weakness of ad markets, CME has indicated that it intends to address the ‘unacceptable' leverage using the capital markets. While such a prospect would normally trigger a selloff - to buy back at the usual SPO discount - we see the CME case as somewhat different. Recall that in early 2009, Time Warner invested USD242m buying fresh equity at a blended 27% premium to the market. As we cannot rule out another lifeline from Time Warner at a premium to the depressed share price, we advise a wait-and-see approach." Deutsche Bank has also lowered the price target from $12.80 to $8.30 on Central European Media, which is currently trading down $0.17 from yesterday's $7.11 closing price.