With earnings season on the horizon, analyst David Joyce of Miller Tabak + Co. has downgraded stock in two media companies, Scripps Networks Interactive and Madison Square Garden.
Joyce says that Scripps is already near its short term target price and noted that it appears that Food Network had managed to renew carriage deals representing about 25% of its subscribers at the end of 2011 at acceptable terms. He adds that deals representing about 50% of Travel Channels subscribers expire at the end of the year and that those could be tougher negotiations.
Noting that Scripps CFO Joe NeCastro has sold shares recently, Joyce is now rating the shares Neutral, down from Buy.
At MSG, Joyce notes that on top of not having a deal with Time Warner Cable, the Knicks are playing lousy. “We have noted some correlation with the Knicks’ performance and the stock, but not have been scientific about it yet,” he says. “This does factor into the potential for post-season revenue and cash flow modeling, however.”
Joyce is rating MSG at Neutral, down from Buy.
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