UPDATE: Jefferies Reiterates Hold Rating, Lowers PT on Central European Media Enterprises on Undemanding Valuations

In a report published Wednesday, Jefferies analyst Will Smith reiterated a Hold rating on Central European Media Enterprises

, but lowered the price target from $12.00 to $5.00. In the report, Smith noted, “Media stocks continue to outperform with the DJ Stoxx Media up +17% over the last year, ahead of the DJ Stoxx 600 at +9%. We still see the sector as attractive on solid structural growth prospects with the advertising agencies our preferred sub-sector. We update our price targets and earnings estimates to reflect 4Q12 results and management outlooks for 2013. On average our 2013 earnings estimates rise 3% and price targets 9%.” Central European Media Enterprises closed on Tuesday at $4.05.