Goldman Sachs has downgraded its 2001 and 2002 earnings forecasts for Pearson, owner of the Financial Times, due to concerns about the retracting advertising advertising market, according to reports.
The broker has reduced Pearson’s earnings per share (EPS) estimates for this year from 47.8p to 40.0p and for 2002 to 58.3 pence from 71.1p. Particularly hit by the downturn have been the
FT and European broadcaster RTL in which Pearson has a 22% stake.
Nevertheless, Goldman Sachs believes that the longer term prospects for Pearson are good and maintains its Recommended stance. By late afternoon shares were down 28p at 1,131p.
Still in the media sector, the broker has a Market Outperform stance on Granada and a Market Perform for Carlton Communications.
