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Research Alert: Nyt: CFRA Lifts Opinion To Hold From Sell Following Multiple Contraction
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Research Alert: Nyt: CFRA Lifts Opinion To Hold From Sell Following Multiple Contraction
May 20, 2026 11:07 AM

01:50 PM EDT, 05/20/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Shares of NYT have fallen 9% since we initiated our Sell on March 23, with next-12-month P/E compressing from 30x to 26x, now below its 27x three-year average. The sell-off was driven by macro headwinds (rising yields, inflation, geopolitics) rather than fundamental deterioration, prompting our upgrade to Hold from Sell. We keep our target price at $76, 27x our unchanged 2026 EPS estimate of $2.83, which remains below the five-year average of 30x. At a recent conference, CEO Levien expressed confidence in reaching 15M subscribers by 2027 vs. 13M today. Operating margins expanded from 7.9% in 2019 to 12.3% in 2025 due to digital bundle adoption. Q1 digital-only subscription revenue grew 16% Y/Y, supporting our estimates. However, we remain at Hold rather than Buy given ongoing print revenue declines (~8% of revenue, declining mid-single digits annually), and AI platform risk, where generative AI could pressure traffic over time, though NYT's premium content and recent licensing deals provide a partial offset.

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