Bear Stearns downgraded Entravision Communications (EVC

) to peer perform from outperform.

Analyst Victor Miller says incremental margins at core stations were just 37% in the fourth quarter and 47% for 2002, meaning either there is considerable upside at core stations or Entravision cannot contain its cost structure.

Miller says the Spanish-language media company spent nearly $240 million in acquisitions in 2002 on stations with little cash flow; investors may believe the company will rationalize the purchase prices, or it will have difficulty generating meaningful cash flow at its newly acquired properties.