VISN Has Long Term Growth Prospects, Faces Integration Risks

Analysts at JP Morgan initiate coverage of VisionChina VISN with a "neutral" rating. The target price for VISN is set to $4.10. JP Morgan expects a structural long-term growth in mass transit advertising at VISN as: “(1) viewer ship increases with urbanization and significant investment in subway infrastructure; (2) the advantage of real-time broadcast of information, as a sign of modernization, attracts bus and subway companies to partner with VISN; and (3) VISN’s day-time broadcast is complementary to night-time nationwide at-home TV.” “While we think the long-term growth trend is positive, we believe the company still faces integration risks after the DMG acquisition ... In addition, a Beijing subway contract is due to expire in July 2010, which could cause further margin pressure,” the analysts mention. More Analyst Ratings here