Thomas Yeh, an analyst from Morgan Stanley, maintained the Hold rating on New York Times. The associated price target was raised to $59.00.
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Thomas Yeh has given his Hold rating due to a combination of factors related to the New York Times’ financial performance and market position. The company’s core digital subscription business is experiencing healthy growth, with revenues increasing at a mid-teens percentage year-over-year. This growth is supported by stable net additions and average revenue per user trends, which are crucial for maintaining the company’s premium valuation.
However, despite the strong performance in digital advertising and licensing revenues, there are concerns about the sustainability of this growth. The current valuation, at 15.5 times the estimated 2026 EBITDA, already factors in a double-digit EBITDA compound annual growth rate. There are risks to the valuation multiple if subscription growth slows down. Additionally, while the recent licensing deal with Amazon adds revenue potential, it also introduces risks related to direct traffic in the long term. These factors contribute to the decision to maintain a Hold rating, as the stock’s current price reflects these growth expectations.
In another report released today, Barclays also maintained a Hold rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 91 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.