Morgan Stanley Reports on AirMedia(AMCN)

Morgan Stanley reported earlier today on AirMedia AMCN. In the report, Morgan Stanley expressed optimism about the company. Morgan Stanley writes, “We reduce our 2011/2012 full year sales forecast by 12-13%. The company will likely be loss-making until 4Q, as overall seasonality improves with the anticipation of recovery from auto sector. We maintain our OW rating on the stock due to its strong cash position, with net cash accounting for half of AirMedia's market value. Its US$20mn share buyback may offer support to its share price. At current price, the stock trades at high-teens our 2012e earnings. Faster auto advertising sales recovery and better execution may offer earnings upside, in our view.” Morgan Stanley currently has an Overweight rating on the company. Shares of AirMedia closed the trading day yesterday at $4.17, up $0.28 from the opening bell.