A complete re-evaluation of its assets and a subdued management guidance of broadcasting company Emmis Communications Corporation (EMMS) have led Zacks senior media analyst Ann Northrop, CFA to issue a Hold rating on its shares: 

'Mired in a secular downturn, Emmis has recently re-evaluated its assets - divesting most of its TV stations - refinanced its debt at lower rates, and returned capital from the station sales to shareholders through dividends. We expect these efforts to hone management's focus on its radio and publishing operations, significantly reduce the company's cost of capital, improve cash flow and bolster ROE [return on equity].

'Nevertheless, we think the current valuation of 11.9x 2008 earnings leaves little upside in light of weak industry fundamentals, while the company's future stock buy-backs will be limited by its heavy debt load. Management anticipates that its net revenue from radio division for 2Q08 will decline year-over-year at a mid- to high-single-digit rate.

'Management expects its international radio operation to sustain its strong performance, partially offsetting the continued weakness in domestic radio operations. FY08 capital expenditure is expected to be $9 million. Against this backdrop, we rate the stock as a Hold.'