HOLD Television Broadcasts Closing price: $33.30 Target price: $30 Share price performance (%) 1wk: 2.34 3mths:11.2 1mth:5.12 1yr:19.78 The rating on TVB was upgraded from 'sell' on hopes of strong growth in advertising spending. Analysts Anne Ling and Ebru Sener have revised their estimated growth rate of advertising spending from 10 per cent to 13 per cent this year. However, they caution the recovery will be overshadowed by losses from the new pay-television business. They said in a report losses from the pay-television unit were expected to be $150 million this year. Deutsche Bank BUY Brilliance China Automotive Closing price: $2.65 Target price: $3.40 Share price performance (%) 1wk: 7.82 3mths:31.16 1mth:15.87 1yr:45.6 Earnings projections for the mainland carmaker were slashed by 23 per cent for this year and 20 per cent for next as government steps to cool the economy are seen cutting into sales. Still, analyst Charles Cheung has reiterated a 'buy' rating on the stock. He said in a report the counter was likely to sustain its outperformance in the mainland sector given its more diversified product mix and larger exposure to the more attractive middle range to high end car segment. Citigroup Smith Barney HOLD Johnson Electric Holdings Closing price: $7.70 Target price: $8.25 Share price performance (%) 1wk: 6.2 3mths:14.91 1mth:6.2 1yr:16.75 Expectations of a rebound in earnings and a low valuation led analyst Joseph Ho to upgrade his recommendation on the mini-motor maker from 'fully valued' to 'hold'. Mr Ho said in a report that the company had indicated a modest improvement in gross margins. 'The outlook turns positive as management is gradually passing on higher costs to its end-customers,' he said. DBS Vickers
