Is the fat lady starting to warm up?
July 09, 2008
Lehman Brothers slashes NYTCo price target
Virtually announcing to the world that the New York Times Company is in the process destroying shareholder value, investment bank Lehman Brothers is telling investors that its 12 month price target for a share of New York Times Company stock is $8 a share, down 46 percent from $15.06 at the time the report was published.
Lehman sees ad revenue declining even faster than it had previously predicted, along with acceleration in the decline of earnings per share. It warns investors away from an asset play here, no doubt because the Sulzberger family is committed to keeping the company intact. So the only way the company's shares should be evaluated is on the basis of its rapidly deteriorating fundamentals.
Worst of all, Lehman sees a possible dividend cut ahead. That would be painful for many members of the ruling family, and could threaten Pinch Sulzberger's control eventually.