AirMedia To Return To Profitability By Q3

Analysts at JP Morgan initiate coverage of AirMedia AMCN with a "neutral" rating. The target price for AMCN is set to $4.60. JP Morgan expects AMCN to return to profitability by Q3 and post strong revenue growth in 2010 driven by: “(1) an increase in digital frame ASP; (2) increase in the utilization rate for traditional media across airports; and (3) potential upside in 2H10 or 2011 from the Sinopec gas station network contract.” “AirMedia has been active in acquiring new media assets. However, the results have been mixed, for example, acquiring traditional airport media in Beijing has led to writeoffs. For the Sinopec gas station ad network acquisition, revenue is falling behind company’s original plans. We believe the company would swing to loss again with further aggressive high-cost media acquisitions,” the analysts say. More Analyst Ratings here