Sharewatch: Carlton and Granada Knocked By Downgrade
Carlton and Granada were seen in focus yesterday after Dresdner Kleinwort Wasserstein downgraded the groups on valuation concerns and downgraded the stock to reduce from hold.
Media analysts at Dresdner Kleinwort Wasserstein reportedly say that the broadcasters are overvalued in the current advertising climate and that their £2.4bn merger may well be blocked. They also warn that the impending war in Iraq and minimal growth in corporate profits will hit European TV broadcasters hard this year. The stocks were seen down 3.35% and 2.02% respectively.
Elsewhere, Daily Mail & General Trust was seen in focus after reportedly brushing aside concerns about Express Newspaper’s rival to the London Evening Standard. The stock was seen down 1.08%.
Investors will also consider news from News Corporation, which last night reported a solid increase in quarterly profits. However, the tabloid price war knocked profits in its UK newspaper division, with price cuts on its trademark red-top, the Sun, estimated to top £40 million.
The closing prices of media company shares on Wednesday were:
