UBS (UBS) Ups CTC (CTCM) Price Target by 12%

UBS Securities (NYSE: UBS) reiterated the Buy rating on CTC Media (NASDAQ: CTCM) and raised the 12 month price target from $21 to $23.60, primarily on the revision of macro risk.

UBS expects an 18% growth in the TV advertising market in Russia and the worst case scenario for CTC Media would be if FAS prohibits the exclusive advertising agreements for Video International. In the light of the high-profile anti-alcohol campaign, the chances for a ban on TV advertising of beer are above average. The later the ban, if any, comes into force, the better the chance that it will be smoothly absorbed by the market is. CTC Media is also sensitive to the developments around the stock options of ex-CEO Alexander Rodnyansky.

The upcoming events of importance are the 4Q09 US GAAP results in February 2010 and the strategy presentation in February-March 2010.