Banc of America Securities today downgraded New York Times to sell from neutral. The analyst attributed the regression to predictions that a slight recession could topple the Times' 2008 pretax earnings to come in nearly 1/5 below the average analyst estimate. The price target on the shares was depressed nearly one-third to $14 from $21, while the equity's ad revenue is now expected to depreciate by 9% in 2008.
Ahh, the times they are a' changin'. Things have been rough for most newspapers lately, as print versions of the news have been 'dinosaured-out' via the Internet. NYT, which is the parent company of its namesake as well as the Boston Globe, amongst others, is no exception. Since hitting its 52-week high in June, the security has crumbled more than 40% to reach a new 52-week low today.