Needham upgraded CNET Networks (CNET) to hold from underperform, citing the media company's quarterly results.
Analyst Mark May upgraded the stock amid positive factors such as CNET Networks' control of its costs during the quarter. When taking the company's sale of its Computer Shopper magazine business into account, the analyst calculates that CNET's earnings per share guidance is below the Street consensus mean estimate, however. He cut his 45 cents 2006 earnings per share (EPS) estimate to 29 cents and his 55 cents 2007 estimate to 53 cents. He still upgrades his recommendation, as he believes 2006 expectations have been set at a reasonable level.