Intel, Ford and Target rise premarket; Deckers slumps
Investing.com - Citizens reiterated its Market Outperform rating and $6.00 price target on Gannett (NYSE:GCI) stock on Thursday, despite lowering estimates for the third quarter of 2025. The media company, currently trading at $3.71, sits between its 52-week range of $2.55 to $5.91, with a market capitalization of $528.5 million.
The firm has conservatively reduced both top and bottom line estimates for Q3 2025 due to ongoing uncertainty across several areas of Gannett’s business.
Citizens noted that while persistent headwinds continue to affect the media company, Gannett’s strategic initiatives in subscriptions and Digital Marketing Solutions (DMS) are beginning to establish groundwork for longer-term stabilization.
The firm views Gannett’s risk/reward profile as favorable, pointing out that shares currently trade at just 5.3x 2026 EBITDA, with the stock last closing at $3.71.
Citizens’ unchanged $6 price target is based on approximately 7x 2026 estimated EBITDA of $310.4 million, representing a 13.8% margin, with the firm citing multiple upcoming catalysts to accelerate digital revenue growth, expand margins, and reduce leverage.
In other recent news, Gannett Co Inc reported its earnings for the second quarter of 2025, revealing a decline in total revenues. However, the company experienced a positive shift in digital advertising, which returned to growth during this period. This digital growth marks a turnaround from the previous quarter’s decline, with digital advertising trends improving by 4% year-over-year. Despite the lowered guidance for 2025, JMP Securities has maintained its Market Outperform rating for Gannett, keeping the price target at $6.00. The firm noted positive signs in Gannett’s business fundamentals, suggesting potential growth in digital revenue by the latter half of 2025. Gannett’s strategic focus remains on digital transformation and cost reduction to address ongoing industry challenges. These developments reflect cautious optimism among investors regarding the company’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.