Deutsche Banc Alex. Brown downgraded its investment ratings on shares of Spanish-language broadcasters Univision (UVN) and Hispanic Broadcasting (HSP) to buy from strong buy.
Analyst Andrew Marcus told S&P MarketScope that he downgraded Univision in sympathy with Hispanic Broadcasting's re-annoucement of an expected Q4 shortfall. He says the extent of HSP's shortfall is surprising given the fact that the company has historically proven to be less cyclically exposed. Marcus says a multiple revaluation is taking place in the Spanish-language media sector. He still views both Univision and Hispanic Broadcasting as the two fastest growing companies in their universe.
The analyst left his earnings estimates for Univision unchanged. For HSP, Marcus cut his his $118M 2001 earnings before interest, taxes, depreciation and amortization (EBITDA) estimate to $112M, and his $0.85 2001 after-tax cash flow per share estimate to $0.83.