J.P. Morgan analyst David Karnovsky has maintained their bullish stance on NYT stock, giving a Buy rating yesterday.
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David Karnovsky has given his Buy rating due to a combination of factors that highlight the New York Times’ strong financial performance and growth potential. The company’s Q2 results showed an impressive AOP of $134 million, surpassing both J.P. Morgan’s estimates and consensus expectations. This was driven by robust digital subscription growth of 15.1% and a notable increase in digital advertising revenue by 18.7% year-over-year, with contributions from both The Athletic and the core Times.
Additionally, the New York Times’ strategy to enhance its digital offerings and expand its subscriber base through bundled subscriptions is expected to yield long-term benefits. The management’s reaffirmation of its 15 million subscriber target by 2027 and the ongoing improvements in digital ARPU further support this optimistic outlook. Karnovsky’s updated model reflects increased revenue and AOP estimates, with a new price target of $70 by December 2026, indicating confidence in the company’s continued growth and market leadership in the digital news sector.
According to TipRanks, Karnovsky is a 5-star analyst with an average return of 12.9% and a 69.90% success rate. Karnovsky covers the Communication Services sector, focusing on stocks such as IMAX, Cinemark Holdings, and Walt Disney.
In another report released yesterday, Huber Research also maintained a Buy rating on the stock with a $62.00 price target.