UPDATE: Goldman Sachs Upgrades CTC Media to Buy on Limited Downside

Goldman Sachs upgraded CTC Media

from Neutral to Buy and raises the price target from $9.80 to $11.20. Goldman Sachs commented, "CTC Media is the worst performing CEEMEA Media stock over the last 12 month, with 24% underperformance vs. MSCI EM EMEA. We believe that risks related to inventory dynamics, profitability outlook and DTT transition costs are now more than priced in as the company trades at a 46% discount to CEE peers. Concerns are overdone in our view and the discount is not justified given CTC Media's strong market exposure and industry positing. Our price target reflects full DTT rollout costs and corporate governance risks but we still see 38% upside potential and upgrade CTC Media to Buy (from Neutral)." CTC Media closed at $8.10 on Friday.