Emap downgraded to "hold"

12/10/07 - Panmure Gordon & Co

LONDON, December 10 (newratings.com) - Analyst Alex DeGroote of Panmure Gordon downgrades Emap Plc (EMA-GBX) from "buy" to "hold." The target price has been reduced from 925p to 800p.

In a research note published this morning, the analyst mentions that the outcome of the company’s review process has been disappointing. Emap has not divested its B2B assets, which was earlier expected to have been well-bid, the analyst says. Organic growth in the B2B segment is estimated at a low 4%, with limited margin upside, Panmure Gordon adds. The company is expected to pay a special dividend of 460p per share on the completion of the sale of the Consumer assets, which is likely in 1Q08E, according to the analyst.