McClatchy Co. shares fell today after Deutsche Bank downgraded the company on concerns that higher newsprint costs and lower revenue expectations will hurt earnings.
Deutsche Bank analyst David Clark cut his rating to “sell” on the newspaper publisher and lowered his full-year earnings estimate to 87 cents per share from $1.13 per share.
The analyst also said McClatchy’s high debt levels will pressure the stock as revenue slows.
The company said it does not comment on analyst notes or stock activity.
Newspaper publishers have been losing revenue to online sites as advertisers follow readers to the Internet.
McClatchy shares fell 50 cents, or 7 percent, to $6.28 in midday trading. The stock touched a 52-week low earlier in the session at $5.95, eclipsing the prior mark of $6.67.