UPDATE: Benchmark Lowers PT on Valassis Communications Due to Weakness in Shared Mail

In a report published on Thursday analysts from Benchmark lowered the price target on Valassis Communications (NYSE: VCI) from $30 to $27 and maintained a Hold rating on the company. In the report lead analyst Edward J. Atorino commented that, "We believe Valassis' (VCI-Hold, PT from $30 to $27) revenue trends seen in 1Q13 have, for the most part, continued into the second quarter. Shared Mail revenues are expected to be up 1-2% in 2Q13, reflecting continued pressure on wrap sales primarily to large retailers and weakness across the specialty and discount categories. Neighborhood Targeted revenues likely continue to decline sharply, as anticipated, reflecting effects of CPG coupon promotional strategies and especially the change from gross to net pricing by CPG's. FSI revenues are recovering sharply from the cutbacks by CPG's last year, increasing 12% in 1Q13, the largest increase in at least five years, and are expected to be up 22% in 2Q13 including the effect of an additional publishing date (11) this year vs. last year. International Digital and Services revenues are expected to be up 15% in 2Q13, reflecting strong In- store revenues and increased digital revenues, including last year's acquisition of Brand.net. Mainly due to expected continued weakness in Shared Mail revenues, we are trimming our 2013 earnings estimate to $3.05 from $3.47."Valassis Communications is up almost 1 percent on the day and currently trades at $25.71