Tue Sep 17 07:17:02 UTC 2024: ## Gannett Gets a Boost from Citi, Despite Recent Downgrade
**New York, NY -** Citigroup has upgraded its rating on Gannett Co., Inc. (NYSE:GCI) from Sell to Neutral, citing a series of positive developments for the media company. The firm maintains a price target of $5.10.
Citi’s optimism stems from several factors:
* **Potential Google Case Outcome:** While the Department of Justice case against Google in Virginia might not directly impact Gannett, it could signal favorable outcomes for Gannett’s own legal endeavors.
* **Strategic Debt Management:** Gannett’s recent moves to take on more debt to eliminate convertible bonds and its plans to sell assets to reduce leverage could improve equity value.
* **Revenue Stabilization:** Gannett has demonstrated progress in slowing the decline of its topline revenues in the first half of 2024. This could lead to stable revenue growth by the fourth quarter of 2024 or early 2025.
This positive outlook comes despite Citi’s recent downgrade of Gannett’s rating from Neutral to Sell, following the company’s announcement of a substantial refinancing deal.
Gannett has been reporting strong financial performance, with its Digital Marketing Solutions (DMS) business achieving record revenue and digital-only subscription revenue reaching new highs. The company is also actively reducing debt by selling assets and plans to start negotiations for the exchange of its convertible notes.
However, Gannett faces challenges, including a decline in revenue over the past twelve months. Despite this, the company has experienced a significant price return over the past six months, indicating strong investor confidence.
InvestingPro suggests that Gannett’s stock may be undervalued based on its earnings growth and that the company’s fair value could be higher than the current analyst target.
As Gannett navigates its financial restructuring and the broader media landscape, investors will be closely watching the company’s performance in the months to come.
First Piper 