JPMorgan analyst Alexia Quadrani downgraded Gannett Co Inc (NYSE: GCI) — the media holding company that operates USA Today and its network of affiliates — from Neutral to Underweight, maintaining a $10 price target.
Gannett is considered well-positioned among local print media groups thanks its strong brand, and recent acquisition of ReachLocal, and shares have been stable despite long-time concerns regarding print circulation and advertising trends.
However, JPMorgan has repeatedly found cause to cut its earnings projections. The company’s print business has weighed down growth from ReachLocal — an online marketing solutions provider — and other online initiatives.
“Therefore relative to our broader media universe, we believe GCI shares will remain an underperformer,” Quadrani said in a note.
Upside risks for the company include further publication acquisitions, outperformance from ReachLocal and positive volatility in the advertising market.
Gannett shares were trading down about 7.7 percent to $10 at time of publication.
JPMorgan Buying New York Times Stock As More Consumers Buy Digital Subscriptions
Latest Ratings for GCI
|Jul 2018||JP Morgan||Downgrades||Neutral||Underweight|
View More Analyst Ratings for GCI
View the Latest Analyst Ratings
See more from Benzinga
- Wireless Speaker Company Sonos Files For IPO: What You Need To Know
- Susquehanna Lowers Alibaba Estimates, Maintains It's An E-Commerce 'Killer'
- HC Wainwright Unfazed By Zynerba Ending ZYN001: Drug 'Wasn't In Our Numbers'
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.