Arbitron falls on downgrades after pact loss

On Tuesday radio broadcasters Cumulus Media Inc. and Clear Channel Radio said they would forgo renewing a contract with Arbitron and would instead sign with Nielsen Co. to provide audience measurement and radio ratings for several markets across the country.

James Boyle of CL King & Associates said in a client note that approximately 19 percent of Arbitron's revenue could be in jeopardy as small market pacts fall off in upcoming years. The company may be more insulated from competition in larger markets where it has clients signed to long-term contracts typically spanning four to seven years, he added.

Boyle downgraded Arbitron to "Accumulate" from "Strong Buy" and cut its price target to $27 from $38.

Elsewhere, JPMorgan analyst Alexia Quadrani downgraded Arbitron to "Neutral" from "Overweight."

Shares of Arbitron slid $4.79, or 22.1 percent, to a new low of $16.90 in afternoon trading.