On Friday morning, RBC Capital Markets media analyst Drew McReynolds lowered his target price and earnings estimates on Astral Media Inc. (OTC:AAIAF) following "disappointing" third quarter results.
While he made the changes to reflect lower revenue growth assumptions in the company's core radio operations, he also noted that the stock is trading near its historical trough.
Relief in the form of a bottoming advertising cycle may be a few quarters away, but Mr. McReynolds expects improvements in both radio and the company's pay television properties next year.
In a note to clients, he wrote:
For longer-term investors with a positive macro outlook, we believe these levels represent an attractive entry point.
Mr. McReynolds bumped down his 2008 and 2009 earnings estimates by 5% and 4%, respectively, and lowered his target to C$39 from C$41.