UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Arbitron
In a report published Friday, Deutsche Bank reiterated its Hold rating on Arbitron (NYSE: ARB), and raised its price target from $35.00 to $37.00.
Deutsche Bank noted, “On Wednesday a Cumulus radio station operations director in Cincinnati (Hold, $40.61) blogged on Cincinnati.com that the Cumulus corporate office is in the final stages of negotiations to sign a new contract with Arbitron, presumably for Cumulus' diary markets. Resigning Cumulus in the diary markets has been one of the main catalysts for a somewhat sleepy story that, if true, would be a short-term positive for Arbitron in that it would a) lock in steady mid-single digit revenue growth for 2013 and b) flatter 2013 EPS by 4-6%. Arbitron's longterm growth profile would not change materially, but the company would buy itself more time to allow the radio industry to come around to its approach to measuring digital streaming and for its emerging cross-platform and mobile offerings to gain momentum and scale.”
Arbitron closed on Thursday at $38.25.
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