BofA Securities analyst David Plaus initiated coverage on The New York Times Company (NYSE:NYT) Wednesday. The firm issued a Neutral rating and an $84 price forecast.
Plaus highlighted the company’s successful shift to a digital-first, multi-product platform. However, the analyst warned that recent stock outperformance might cap future gains.
A Decade of Digital Transformation
The analyst credited the company for its decade-long pivot to a subscription-driven model. This evolution centered on the All-Access bundle, which includes news, games, cooking and sports.
“We see NYT as well positioned in the digital ecosystem driven by the power of its diversified, bundled subscription model,” Plaus wrote. This strategy has created predictable, recurring cash flow. Subscriptions now represent nearly 70% of total revenue.
Valuation Constrains Further Growth
Despite a solid long-term trajectory, the stock has surged over 65% in the past year. BofA noted that the two-year forward earnings before …
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