Auriga Expects Focus Media to Post Solid Q2 (FMCN)

Focus Media FMCN is due to release its Q2 results on August 23rd. Auriga said, "Focus Media (FMCN, Buy) has not moved much YTD even though the company delivered a strong 1Q10, provided robust 2Q10 guidance and is highly likely to deliver another strong quarter. We believe the lack of stock movement is not due to potential negative catalysts, but rather is due to concern over the sustainability of its growth and what the appropriate P/E multiple should be. We believe FMCN’s growth is sustainable, driven by both the upgrade of China’s advertising landscape, which demands more segmented and targeted marketing, and FMCN’s better execution." Focus Media is rated Buy with a price target of $24. Shares of FMCN are currently trading at $17.83.