Goldman Sachs Maintains Buy Rating On FMCN

Goldman Sachs is maintaining its Buy rating and $43 on Focus Media Holding Ltd. FMCN. “AirMedia AMCN discussed on its 1Q results call yesterday materially weaker auto-related advertising due to the Japanese earthquake disrupting supply, which negatively affected 2Q revenue by $6mn-$8mn (to $60mn - $62mn) and resulted in weaker-than-expected revenue growth guidance of 6.5%-10% yoy vs. 26% yoy in 1Q (when auto ad revenue rose 75% yoy),” Goldman Sachs writes. “This has raised investor concern over the potential impact on Focus Media (FMCN), which is due to report 1Q results in late May.” Focus Media closed Tuesday at $34.99.