Deutsche Bank cuts NYT’s rating from 'Hold' to 'Sell'
By Erina Lin, Monday 25 February 2008 at 21:35 :: Newspaper Data :: #1315 :: rss
Deutsche Bank cut its rating on shares of The New York Times Co. Monday, as the industry continues to battle soft U.S. advertising trends, the Associated Press reported.
Deutsche Bank's Paul Ginocchio cut his rating on the company from "Hold" to "Sell," and lowered his price target to US$15 from $17.
Ginocchio said advertising nationwide has softened, and he predicts national advertising will remain difficult, at least in the first half of 2008, Editor & Publisher reported.
Shares have risen recently in anticipation of New York Times' annual shareholder meeting in April, but Ginocchio warned that shares may drop if efforts by investment firm Harbinger Capital fail.
Last week, Harbinger increased its stake in the company to 15.6 percent, intending to seek seats on the company's board. A Goldman Sachs analyst also said the New York Times’ asset sales advocated by hedge funds may not be financially practical, according to Bloomberg.
Ginocchio said the share price "more than discounts" operational benefits that may arise from the election of new board members, E&P reported.
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