UPDATE: Citigroup Upgrades Gannett to Buy on Near-Term Catalysts

Citigroup upgraded Gannett

from Neutral to Buy and raised the price target from $19.00 to $22.00. Citigroup noted, "We think the recent sell-off is an over-reaction and see … near-term catalysts that will drive the stock higher. Our proprietary survey of retailers and their agencies suggest their print ad declines should moderate in 2013. The results imply ~150 to 200bps improvement in the rate of decline. Also, 1Q advertising should see an optical benefit as Easter will be in March vs. April in 2012. … We believe the Digital Marketing Services offering is a meaningful opportunity based on our recent discussions with AH Belo and ReachLocal, both of which offer similar services." Gannett closed at $18.68 on Tuesday.