Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Markets & Finance

Lehman Cuts AOL Time Warner Rating

Lehman Brothers lowered its investment rating on shares of AOL Time Warner (AOL) to market perform from buy.

Analyst Holly Becker says the downgrade was based on her new, lower-growth projections for the company's AOL division. Becker cites its slowing narrowband business, its costly broadband transition, the sluggish online ad market, and costs for European expansion. The stock recently dipped below $28 after several new data points surrounding the AOL division became apparent , suggesting that EBITDA growth will likely suffer as the company works its way through the broadband transition and the structural challenges facing online advertising. The stock trades at about 15.4 times EBITDA. Becker says her analysis suggests the market is valuing the AOL division at 21 times EBITDA, which she considers a rich multiple given the challenges it faces.

blog comments powered by Disqus