UPDATE: Goldman Sachs Downgrades CTC Media to Neutral On Valuation, Outlook Concerns

Goldman Sachs downgraded CTC Media

from Buy to Neutral with a reiterated $11.20 price target. Goldman Sachs commented, "Our fundamental view on the business is unchanged, with the key uncertainty being the remaining DTT transition process in Russia. We believe that, as the cost of the DTT transition becomes more clear throughout 1H2013, we will be able to gauge the outlook for the company's EBITDA margins. Recent audience share data suggest that share for CTC Group remains challenged by poor performance of nonprime time programming. While this has limited impact on the revenue market share, it may increase investor concern about the long-term sustainability of the business model and the long-term outlook for audience share." CTC Media closed at $10.24 on Thursday.