Zacks Investment Research upgraded shares of Meredith Corporation (MDP) from UNDERPERFORM to NEUTRAL on November 12, 2014, with a target price of $53.00.
Improving digital advertising trends and favorable outcome from the recent acquisitions helped Meredith Corp. to post better-than-expected first-quarter fiscal 2015 results. Earnings per share of $0.65 and revenues of $371.2 million beat the Zacks Consensus Estimate while registering year over year growth of 22.6% and 4%, respectively. Also, the company assumed distribution rights of another popular editorial of Martha Stewart Living Omnimedia for the next ten years and acquired the broadcast assets of WALA, the Fox affiliate in Mobile-Pensacola. These prompted us to upgrade our recommendation to Neutral. However, the headwinds plaguing the print media sector along with the volatile nature of advertising revenues and fluctuating prices of paper and postage still remain concerns.
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