Zacks Investment Research upgraded shares of The New York Times Company (NYT) from NEUTRAL to OUTPERFORM on July 05, 2012, with a target price of $8.75.
The New York Times Company's first-quarter 2012 earnings of $0.08 per share beat the Zacks Consensus Estimate of $0.02, and increased from a break-even in the prior-year quarter. The quarter reflects favorable response to the digital subscription packages, rise in circulation revenue and cost containment efforts. Total revenue fell 0.3%, however, at a decelerating rate, following a decline of 2.8% in fourth-quarter 2011. The ongoing slump in the advertising market continues to weigh upon the company's results. To mitigate this, the company is diversifying its business and adding new revenue streams. The company is also streamlining its cost structure, strengthening its balance sheet and restructuring its portfolio. The company is offloading assets that bear no direct relation with the core operations in order to re-focus on its core newspapers and pay more attention to its online activities. Consequently, we upgrade our recommendation on the stock to Outperform.
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