Analyst: Olympics not likely to hurt Focus Media

The shares have fallen in recent weeks, and on Tuesday, American Depositary Shares of Focus lost as much as $1.95, or 7.4 percent, to $24.62 during trading.

Goldman Sachs analyst James Mitchell said in a Wednesday client note that he attributes Tuesday's drop to worries that the company's Beijing outdoor ad business will be impacted by a rule that only Olympics sponsors can advertise through that medium in August and September.

But after speaking with Focus management, the analyst said that Focus "confirmed that its commercial network, poster frame, in-store, and online businesses are not subject to this rule, which only applies to a few of the TV screens in its Beijing travel and hotel network."

Mitchell said these screens are "immaterial" to the company's sales and profit.

"The rest of the business sounds on track, and has enjoyed a full rebound from the post-earthquake deceleration," said the analyst, who rates the stock "Buy" with a $58 price target.

Focus' ADSs dropped 90 cents, or 3.6 percent, to $24.73. Earlier, the stock touched a 52-week low of $24.50.