A Hold recommendation has recently been issued to publishing giant PRIMEDIA, Inc. (PRM), by Zacks senior media analyst Ann Northrop, CFA.  Here's what her latest update said:

The advertising revenue in PRIMEDIA's core Apartment Guide business (the majority of PRM's revenue after the recently announced sale of the Enthusiast Media division) appears to be stabilizing after falling for three consecutive quarters (5% in 3Q06, 5.2% in 4Q06, and 3.2% in 1Q07, 0.5% in 2Q07), as the softening housing market slows condo conversions, which have shrunk the business customer base. Meanwhile, we expect cost-cutting efforts, including consolidation of PRM's six NYC offices into one, to bolster declining EBITDA.

Nevertheless, we expect weak industry-wide ad trends to continue and therefore don't foresee a meaningful near-term recovery. Management reiterates its 2007 guidance that the company will deliver mid-single digit percentage segment EBITDA growth (excluding corporate overhead), and low-single digit revenue growth, reflecting year-over-year revenue growth in New Home Guide and Rentals.com, partially offset by a full-year decline in Apartment Guide on the assumption that the current market trends will sustain.

With improvement in the management and operations of Auto Guide, the company expects operating losses in Auto Guide to diminish throughout the year. Management anticipates capital expenditure of $15 million in Consumer Source, another publication from the media house. We'd recommend a wait-and-watch approach to the scrip as we rate it a Hold.