Ahead of the Bell: New York Times upgraded

Analyst David T. Clark--who recently assumed Deutsche Bank's coverage of the company--now rates New York Times "Hold," down from the previous "Sell" rating.

Clark kept a $15 price target, implying he expects the stock to slip about 3 percent from Monday's $15.39 close.

"We think the current valuation relative to peers is justified by better long-term growth prospects, tempered by a (second half of 2008) slowdown in national advertising, which will disproportionately impact New York Times," Clark said in a note to clients.

The company, he said, should "trade at a meaningful premium" to its sector due to its "superior growth profile and relatively low leverage."

Wachovia Capital Markets analyst John Janedis said he expects advertising weakness to accelerate in 2008. He rates the shares "Underperform."

A company representative was not immediately available for comment.

The new outlook comes at an increasingly tough time for the newspaper industry. Last week six newspapers said they would cut jobs, one said it would outsource printing and Tribune Co. hinted it may sell Tribune Tower, home of the Chicago Tribune, as well as the Los Angeles Times' building.

Shares of New York Times have slipped 12 percent so far this year.