Auriga Raises Estimates For Focus Media

Auriga has published a report for Focus Media Holdings FMCN and writes that: "stock price has been ramping up recently; however, the stock is still deeply undervalued due to both historical reasons and new concerns, such as where the stock can go from here and whether the growth is sustainable. Our research suggests that 1) FMCN has become a major marketing partner of choice for advertisers given its scale and dominant position in the market, which enables the company to grow steadily; 2) Industry upgrade is making FMCN's network become a necessity for marketing since the high-end consumer targeted network is in high demand; 3) Domestic consumption is the underlying driver for FMCN's business." Auriga maintains its Buy rating and $29 price target while raising 2011 EPS estimates from $1.36 to $1.44. Focus Media Holdings closed Friday at $22.19.