CIBC World upgraded Univision Communications (UVN) to sector outperform from sector perform.
Analyst Jason Helfstein cites better-than-expected second-quarter guidance that indicates expense growth is under control. Also, valuation has fallen to a more attractive level relative to the 2004 growth estimates. He thinks the stock has slipped on economic concerns, as well as the delay in Univision's pending acquisition of Hispanic Broadcasting.
Helfstein notes, due to upfront contracts, Univision's revenue is somewhat protected if the economy remains sluggish in 2004, and he says expenses face easier comparisons. He upped the 47 cents 2003 earnings per share estimate to 50 cents, and upped the 74 cents 2004 earnings per share estimate to 76 cents. He has a $37 target.