Oppenheimer Maintains Perform Rating On Focus Media Holding (FMCN)

Oppenheimer in a pre-results survey expects China based internet media company Focus Media(NASDAQ: FMCN) to report earnings in line with street estimates.

Oppenheimer said that it sees a sales growth of 9% next year against a decline of 28% this year. Historically, FMCN increases its rate card by 10-15% every year, however this year was an exception as advertiser sentiment took a negative shift.

Yet media buyers aided with strong growth prospects in the Chinese economy have shown strong interest in FMCN’s commercial properties. The company founders also share this positive outlook. Its CEO increased his stake from 11% to 19% thus aligning his interests with the company’s interests.