Wit Soundview cuts AOL Time Warner (AOL )to neutral from outperform.
Analyst Jordan Rohan says the COO of Bob Pittman was expected. He says he now believes troubles at the online unit could even be worse than he had anticipated, and that it will take several more quarters for any improvement at the unit. Rohan expects online ad revenues will come down, and remain at depressed levels until a not-yet-hired divisional CEO implements a new strategy. Rohan says accounting issues are minimal, but that AOL management could use the shake-up as an opportunity to restate numbers. He cut the $18 target to $13.