CSFB Downgrades Newspaper Stocks

By: E&P Staff Credit Suisse First Boston analyst William Drewry knocked the wind out of newspaper stocks today by downgrading the sector to "market weight" from "overweight."

According to a story in CBS MarketWatch, Drewry told clients, "The bottom-line on the newspaper stocks is that they are in a show me mode with investors in terms of confidence and psychology and could continue to lose relative ground near-term."

The advertising climate is the main culprit for the downgrade. The 3-5% range estimated for ad growth this year is not enough to spark profit growth, Drewry said.

Overall, Drewry singled-out E.W. Scripps and McClatchy as good companies to watch.

CBS MarketWatch reported this afternoon that Scripps is down 1.2% and McClatchy is off 1.1%.