gsjbw signals end of media doldrums

This would have to have flow on effects to MCU and SGN.

BROKER Goldman Sachs JB Were has indicated the worst is over for media stocks after upgrading its view on the sector to neutral from underweight.

GSJBW media analyst Christian Guerra released a note today in which he raised his recommendations on a number of media stocks based on the the broker's "increasingly optimistic view on the economy''.

He said the stabilisation of key data -- the NAB Business Survey and Westpac Consumer Confidence index -- was another factor in the upgrade.

But while moving to a neutral view, he said it was too early to move further to a positive view.

"The key reason is continuing pressure on corporate profit growth,'' he wrote.

"Ad market recessions are driven by falling corporate profitability.''

Meantime, Mr Guerra has upgraded his recommendation the Ten Network from sell to buy, on Fairfax Media from sell to hold and on APN News & Media to hold from sell.

http://www.theaustralian.news.com.au/business/story/0,28124,25555380-7582,00.html