SAN FRANCISCO (AP) — A JPMorgan analyst lowered her rating on Scripps Networks Interactive Inc.'s stock because of concerns about its cable TV networks' dependence on advertising revenue in a weakening economy.
Alexia Quadrani downgraded Scripps Networks from "Overweight" to "Neutral" in an evaluation released Friday.
Although she still likes Scripps Networks' long-term prospects, Quadrani thinks it could be hurt by a potential recession because it gets a bigger chunk of its revenue from advertising than other cable network operators. Scripps Networks' cable channels include HGTV, the Food Network and the DIY Network. About two-thirds of the company's revenue flows from advertising.
Quadrani also sees little opportunity for Scripps Network to make money from licensing its content for Internet streaming to video subscription service Netflix and other online services.
Scripps Networks, which is based in Cincinnati, didn't immediately return a call requesting comment.
The company's shares fell 80 cents, or more than 2 percent, to $38.08 in Friday's late afternoon trading.
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