Deutsche Bank Upgrades CTC Media Inc to Buy

Deutsche Bank upgraded CTC Media, Inc. CTCM to from Hold to Buy and revised the Price Target downward from $10 to $9 in a report issued Tuesday.

Analyst Igor Semenov revised his estimates “to reflect lower macro forecasts and weaker RUB” and also noted that “significant risks related to legislation that limits foreign ownership in media companies to 20 percent...will lead to major changes in CTC Media's ownership structure.”

Semenov believed “that management will be able to find a solution that is acceptable to all shareholders, including minorities. As a result, we think that recent weakness makes it attractive for investors who are prepared to tolerate above-average risks.”

According to the report, key risks include “weaker consumer spending, weak ratings, increasing content costs, unattractive terms in the process of changing the corporate and ownership structure to comply with new legislation, or inability to comply” with new regulations.”

CTC Media, Inc. recently traded at $5.57, up 1.27 percent.