UPDATE: Deutsche Bank Reduces PT to $27 on Focus Media on Weaker Outlook
Deutsche Bank maintained its Buy rating on Focus Media (NASDAQ: FMCN) but reduced its price target from $36.68 to $27.
Deutsche Bank said, "For 4Q12, FMCN guides for a 1% yoy sales increase in the core business to reach US$237-246m, and a 1% yoy decrease in non-GAAP to US$93-98m (mid-point basis). It expects the entire sector to be weak in 4Q12. However, it is seeing adex from Japanese auto brands recovering slowly towards the end of the year. For FY13, management expects 10-20% sales growth for FMCN on the back of 0-5% adex growth in the industry."
Focus Media closed at $23.77 on Tuesday.
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