Entravision Communications shares sink to year low

Shares of Spanish-language media company Entravision Communications Corp. sank to a new year low Friday after a Citi analyst downgraded the stock, citing concerns over lower ad revenue and a legal dispute.

Shares dropped $1.07, or 19 percent, to $4.71, as Citi analyst Tony Wible cut his rating to "Hold" from "Buy." and the broader markets sold off on a bigger-than-expected rise in unemployment and a surge in crude oil prices. Earlier in the session, the stock hit a new annual low of $4.46.

Wible said in note to investors Entravision could be affected by "protracted ad weakness plaguing both radio and TV." He added that the company relies a great deal on advertising from car makers, which has been weak.

Litigation between Univision and Televisa could also produce some "near-term valuation pressure" on the shares, he said.

Entravision owns Univision, the largest Spanish-language network in the U.S. Univision receives its content from Televisa. The two are involved in a legal dispute over digital distribution rights, payments and censorship. Trial proceedings are slated to begin July 1.

"We believe investors should look to revisit the name after the Televisa litigation is cleared up, we see more stability in ad budgets, and/or we see stabilization in auto production," he said.

Entravision Communications did not return phone calls seeking comment.