Gemstar on 'Hold' After Restatement


Deutsche Bank Securities Inc. analyst Karim Zia maintained his "hold" rating on Gemstar-TV Guide International Inc., but lowered his 12-month share price target from $4 to $3.50 after the company restated financial results for the past three years. On March 31, Gemstar reduced its reported revenue over the period by $255.9 million, or 8.5 percent of initially reported figures. Zia was encouraged that Gemstar released its audited financials, but added in a report: "We continue to believe that 2003 will be a rebuilding year, and that any growth will be a 2004 event." Gemstar stock was priced at $3.25 in 4 p.m. trading on April 2.