- Bridge collapses in Washington state, sending cars into river
- Magnitude 5.7 quake strikes Northern California: U.S. Geological Survey
- British police ponder conspiracy after soldier murder |
- Analysis: Markets face rough summer ride as Fed pullback feared
- Special Report: The deeper agenda behind "Abenomics"
Yellow Media shares drop on analyst price cuts
* Shares down 9 pct to C$1.00 in heavy trading
* Desjardins, CIBC, National Bank, BMO cut targets
* Fresh drop follows results, dividend cut on Thursday
* Phone directory publisher seeks digital transition
TORONTO, Aug 5 (Reuters) - Shares of Yellow Media Inc YLO.TO slid again on Friday after analysts cut their price targets on the Canadian phone directory publisher, which is struggling to make a transition to digital media.
The stock sunk to an all-time low on Thursday after the company reported disappointing second-quarter results, slashed its dividend and withdrew its outlook. Later Standard & Poor's downgraded its credit rating.
"Until we are convinced that the road to positive organic growth is clearly established, which we are unable to forecast at this time, we view trading in the shares to be a speculative endeavor," said Desjardins Capital Markets Research, which cut its target to C$1.50 from C$3.90.
On Friday the shares dropped 9 percent to C$1.00, slightly higher than Thursday's lifetime low of 95 Canadian cents. The stock was one of the most active on the Toronto Stock Exchange on Friday.
Desjardins was joined by CIBC, which slashed its target to C$1.25 from C$5.50. National Bank Financial cut to 80 Canadian cents from C$1.50, and BMO Capital Markets revised its target to 75 Canadian cents from C$1.50.
Yellow Media has struggled with declining demand for ads in its Yellow Pages and related directories. It faces stiff competition in selling ad space and coaxing advertisers to buy prime placements on its mobile platform. It is struggling with a C$2.16 billion debt load.
The company reported a loss of 5 Canadian cents a share, down from a profit of 9 Canadian cents in the same quarter last year. It slashed its dividend to 15 Canadian cents from 65 Canadian cents.
Also on Thursday, S&P cut the company's long-term corporate credit rating to "BB+" from "BBB-".
(Reporting by Allison Martell; Editing by Frank McGurty)
- Tweet this
- Share this
- Digg this