Singapore Press Holdings (T39.SG) +0.5% at $4.24 midday, off $4.28 high hit in morning session, says Dow Jones; stock underperforms broader market tad (STI +0.8%) while analysts largely unexcited by FY10 results, which show sluggish 6.1% revenue growth, also downbeat on FY11 earnings outlook as newsprint costs expected to rise, Singapore’s growth to moderate. 

Along with downgrades from DBS Vickers, UOB KayHian, Credit Suisse also cuts stock to Neutral from Outperform, cuts target to $4.60 from $4.75; lowers FY11, FY12 earnings estimates by 3%-4%. 

 

CIMB downgrades stock to Neutral from Outperform, tweaks target to $4.51 from $4.47; highlights management's expectation newsprint prices will climb further in view of industry supply/demand imbalances, efforts to combat this by raising average ad ratio to above 60% to control newsprint consumption without hurting ad revenue. 

 

One thing most analysts agree on: SPH dividend yield of above 6% remains attractive, should provide good support for stock price. Resistance tipped at $4.30.