New York Times Co. Climbs on Stock Upgrade

By: Shares of New York Times Co. rose Tuesday after an analyst said he expects management's turnaround initiatives to start to bear fruit next year.

Edward Atorino of Benchmark Capital raised his rating on the media company to "Buy" and set a $20 price target in a note Tuesday.

"We believe New York Times Company is one of the best positioned newspaper publishing companies for an earnings turnaround in 2008 due mainly to the strength of its flagship publication, The New York Times," Atorino wrote.

The analyst credited new revenue initiatives at the paper including expanded color advertising capacity, premium-priced advertising positions and inserts, and special magazine inserts in the Sunday Times.

The company has raised circulation prices at The Times and reduced third-party and non-profitable distribution, Atorino said. He also touted New York Times' quarterly dividend of 23 cents per share -- a yield of 5.5 percent -- as "historically high."

Atorino warned that continued weakness at The Boston Globe and the regional group is expected to keep earnings under pressure. Additionally, there will be 12 weeks in the fourth quarter this year versus 13 weeks last year, reducing sales comparisons.

In afternoon trading, shares of New York Times Co. added 50 cents, or 3 percent, to $16.95. The stock is off 37 percent from its 52-week high of $26.90 set in February. Shares traded at a year-low of $16.02 last week.