UBS Maintains a 'Neutral' on Gannett (GCI); Adjusting Estimates and Removing Short-Term Buy
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Price: $2.57 -4.46%
Rating Summary:
6 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
6 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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UBS maintains a 'Neutral' on Gannett (NYSE: GCI) price target of $15.00.
UBS analyst, said, "Our Short-Term Buy rating on GCI (added January 11th) was predicated on an announcement at the Investor Day regarding increased return of capital and better cost rationalization, and improved print trends to start 1Q. With no more near term catalysts remaining (and our belief that print trends have moderated into the qtr), we are removing our Short-Term Buy rating and maintain our Long-Term Neutral rating on GCI, based on our long-term concerns over the stabilization of the core print business."
"Our new 1Q12 estimates include: pub advertising unchanged at -6.1%; pub expense +1% (prior -3%), due to investments; and our TV/Digital ests are unchanged. Overall, 1Q rev, EBITDA, and EPS are $1,240M (prior $1,240M; FC: $1,238M), $206M (vs. $237M; FC: $241M), and $0.31 (vs. $0.40; FC: $0.40; inline with mgmt $0.28-$0.32 guide); and ’12 EPS of $2.22 (vs. $2.24; FC: $2.18; mgmt guide $2.18)."
For an analyst ratings summary and ratings history on Gannett click here. For more ratings news on Gannett click here.
Shares of Gannett closed at $15.61 yesterday.
UBS analyst, said, "Our Short-Term Buy rating on GCI (added January 11th) was predicated on an announcement at the Investor Day regarding increased return of capital and better cost rationalization, and improved print trends to start 1Q. With no more near term catalysts remaining (and our belief that print trends have moderated into the qtr), we are removing our Short-Term Buy rating and maintain our Long-Term Neutral rating on GCI, based on our long-term concerns over the stabilization of the core print business."
"Our new 1Q12 estimates include: pub advertising unchanged at -6.1%; pub expense +1% (prior -3%), due to investments; and our TV/Digital ests are unchanged. Overall, 1Q rev, EBITDA, and EPS are $1,240M (prior $1,240M; FC: $1,238M), $206M (vs. $237M; FC: $241M), and $0.31 (vs. $0.40; FC: $0.40; inline with mgmt $0.28-$0.32 guide); and ’12 EPS of $2.22 (vs. $2.24; FC: $2.18; mgmt guide $2.18)."
For an analyst ratings summary and ratings history on Gannett click here. For more ratings news on Gannett click here.
Shares of Gannett closed at $15.61 yesterday.
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