Arbitron Inc. (NYSE:ARB) shares were downgraded to "Hold" from "Buy" by Deutsche Bank (DB) on concerns of slowing growth.
The bank also lowered its price target on the media and marketing information services provider to $38 from $46.
DB analyst Matt Chesler said 2012 guidance is disappointing, but of greater concern is possible deceleration in the core business beyond 2012 when the Portable People Meter (PPM) price uplift has run its course. "While new initiatives are in development, we now see a business with low-teens EPS growth through 2013."
Chesler believes the positive move in the shares yesterday now fully values the company.
The probability for upside to 2012E EPS is now lower, given the need to address the MRC's concerns in certain PPM markets, as well as possible re-envisioning of the approach to digital radio, he wrote.
ARB shares dropped 6.6% to $34.75 on Wednesday. The stock has been trading between $30.46 and $44.61 over the past year.