In a report released today, Thomas Yeh from Morgan Stanley maintained a Hold rating on New York Times (NYT – Research Report), with a price target of $54.00.
Thomas Yeh’s rating is based on several factors that highlight both strengths and potential challenges for the New York Times. Despite a positive post-election engagement and a strong competitive position, there are concerns about the long-term growth of subscribers. The recent increase in digital subscriber net adds, particularly in the core bundle and news-only categories, suggests some growth potential. However, the risk remains that the long-term subscriber growth guidance might not be met if the net additions slow down.
Yeh maintains a forecast of a 12-13% EBITDA CAGR through 2027, supported by a 12% digital subscription revenue growth expectation. The current valuation, with a price target of $54 implying a 14x forward EBITDA, is considered reasonable given the growth outlook. Nonetheless, there are risks associated with a potential slowdown in digital subscriber net adds in the coming years. The strong performance in digital advertising, which constitutes a small portion of total revenues, reflects the company’s ability to leverage non-news platforms despite macroeconomic concerns.
In another report released today, Barclays also maintained a Hold rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NYT in relation to earlier this year.