Dow Jones Unlikely To Be Sold: Analyst

0 Comments

So says Merrill Lynch analyst Lauren Fine, in a research note today..she reduced her rating on the stock to “sell,” citing a high price for the shares and the likelihood that ad revenue growth could be slowing. She also said that while DJ’s shares are occasionally bolstered by speculation that the company could be sold, she said this was unlikely in the near term. The Bancroft family group retains voting control of Dow Jones through a special class of stock.
Fine also said the company’s new management team — CEO Richard Zannino and Journal publisher Gordon Crovitz — will be given time to put their ideas to work.
Reuters: Fine also cited the media company’s high valuation, about 27 times price-to-earnings, writing that “on any valuation metric, DJ shares are substantially above where the comps are trading.”

Comments are closed.