CS First Boston downgraded Dow Jones (DJ) to hold from buy.
On Wednesday the company forecast second quarter earnings per share in the low-$0.20s range. Analyst William Drewry says the downgrade is based on valuation and a continued lack of visibility in the recovery of fundamentals. He says visibility remains virtually nil, and that Dow Jones' second quarter guidance continues to underscore a lack of recovery in key technology and financial advertising categories.
He notes management aggressively cut costs, but that the continued downturn in advertising has pinned down the profit potential. He cut the $1.43 2002 EPS estimate to $1.25, and cut the $2.06 2003 estimate to $1.90.