Analysts downgraded estimates on both price and earnings for West Australian Newspapers (WAN) in the 2009 financial year, The Australian reported.

According to UBS media analysts Lauren Moran and Richard Eary in a report, the economic boom in West Australia in recent years "had insulated The West Australian from problems affecting other newspaper publishers."

"Without this support, we now highlight the risk that the current cyclical downturn accelerates the structural decline (of the paper)." They lowered its target price from A$6.75 to $4.95 a share, The Australian reported.

In addition, Fraser McLeish, ABN AMRO analyst, on Tuesday also showed concerns for the paper's ad levels, saying that local advertising, "at significant cyclical highs in the past couple of years, was now coming off."

"WA had been booming along, but it increases your downside risk once that cycle turns," he added.

UBS has reduced earnings per share estimates for the publisher by 12 percent for the 2009 fiscal year, and by 25 percent for the next two years. A 19 percent drop in classifieds and an 11 percent decline in revenues are foreseen, according to the report.

"Under our revised forecasts, we do not expect WAN to repeat its FY08 financial performance over our five-year forecast period," The Australian reported.