Tuesday, April 17, 2007

Bank Of America Cautious On Terrestrial Radio Stocks

Live In Play, www.briefing.coom, 17-Apr-07, 07:48 AM

BofA reiterates caution of Radio group, sells on CXR, ETM, CDL

BofA says their Channel checks indicate that radio industry rev declined ~4% YoY in March, well below their est for growth of ~2%. The decline was broad across the largest markets, none of the markets surveyed registered positive growth for the month. Firm's channel checks also indicate that radio's recent weakness has persisted in April with continued weakness into the all-important months of May and June. They have reduced their 1Q07 industry rev growth est to 1% from 2%. A poor March suggests that there is some risk to 1Q07 rev ests, especially for ClearChannel (CCU -- though maintain Buy due to asset value) and possibly some risk to Cox Radio (CXR) and Entercom (ETM). Firm would also sell Citadel (CDL).