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Wit SoundView cut AOL Time Warner 's (AOL
) $27 target to $18, and trimmed the targets for Clear Channel (CCU
), Disney (DIS
) and Viacom (VIA
Analyst Jordan Rohan says accounting irregularities at Adelphia Communications and WorldCom calls into question the appropriateness of EBITDA-based valuation. He says he believes valuation multiples for media stocks will be pressured as investors look to use more conservative techniques. Rohan thinks investors will use a blended approach to valuation, which includes price-to-earnings, price-to-sales, EBITDA, and discounted cash flow/free cash flow. Rohan notes on the blended approach, Clear Communications remains his top pick, while valuations for Disney and Viacome appear relatively full. He maintains his outperform on Clear Channel and AOL.