Benchmark Cuts Price Target on New York Times (NYT) Following Lower Guidance
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Price: $64.79 +1.03%
Rating Summary:
6 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark is reaffirming its Hold rating on shares of New York Times (NYSE: NYT) while lowering its price target from $10 to $7 following a deduction in the company's outlook.
Management reported that ad revenue for the third quarter are now forecasted to be down 8 percent year-over-year as print is down 10 percent and digital is down between 2 and 3 percent. The firm now estimates that Q3 revenue of $540 million as circulation is predicted to be up roughly 4 percent offsetting some of the decline.
A major decline in advertising from BP (NYSE: BP) is expected to account for 2 percent of the 10 percent decline in print advertising while some initial cannibalization of advertising revenue by the Times’ online platform may also account for some of the print decline.
An analyst at Benchmark comments, "Subscriptions for The Times digital service continued to expand, likely accounting for much of the increase in circulation revenues, though management indicated that print circulation at the Times was also strong. Management did not provide an update on paid digital subscribers."
For Q3 and 2011, the firm cut its EPS estimates from $0.07 and $0.65 to $0.05 and $0.60.
For more ratings news on New York Times click here and for the rating history of New York Times click here.
Shares of New York Times closed at $5.79 yesterday.
Management reported that ad revenue for the third quarter are now forecasted to be down 8 percent year-over-year as print is down 10 percent and digital is down between 2 and 3 percent. The firm now estimates that Q3 revenue of $540 million as circulation is predicted to be up roughly 4 percent offsetting some of the decline.
A major decline in advertising from BP (NYSE: BP) is expected to account for 2 percent of the 10 percent decline in print advertising while some initial cannibalization of advertising revenue by the Times’ online platform may also account for some of the print decline.
An analyst at Benchmark comments, "Subscriptions for The Times digital service continued to expand, likely accounting for much of the increase in circulation revenues, though management indicated that print circulation at the Times was also strong. Management did not provide an update on paid digital subscribers."
For Q3 and 2011, the firm cut its EPS estimates from $0.07 and $0.65 to $0.05 and $0.60.
For more ratings news on New York Times click here and for the rating history of New York Times click here.
Shares of New York Times closed at $5.79 yesterday.
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