For those following Gannett Co. second quarter earnings on Friday, a familiar name might be popping in on the line. Douglas Arthur — the sharp analyst late of Morgan Stanley known for such hits as “Knight Ridder: A Scenario Analysis”– is back covering the sector again. Or something akin to it.
Arthur initiated coverage of Gannett for Evercore Partners last week, stamping Gannett with an “overweight” rating and a price target of $18. It’s likely his report sent shares in the newspaper and broadcasting company soaring about 6% to$14.16 on July 7 close.
Newspaper companies used to be covered by a boatload of analysts until around 2008 when they started dropping like flies. Maybe if a few more come back into the fold we’ll be looking at an upward trend.