ECM Libra Investment Research expects Media Prima Bhd to report stronger second quarter financial year 2011 results later today, driven by strong industry advertising expenditure (adex) growth.

"Given its leading integrated media play and the positive adex outlook, we remain upbeat on the company's prospects," it said in a research note today.

ECM Libra Research has raised Media Prima's financial year 2011-2013 earnings by 4.7 per cent to 12.8 per cent and reiterated a "buy" call with an upgraded target price of RM3.31 from the previous RM3.07.

It said the economic growth outlook remains the key risk for Media Prima going forward, as adex growth could taper off, given the positive correlation between gross adex growth and real gross domestic product (GDP) growth.

"Nonetheless, we believe that the upcoming adex friendly events such as the Olympics and General Election could mitigate the downside risk of the adex growth momentum going forward," it added.