New York Times Shares Charge Higher as Lazard Upgrades, Cites NAV Improvement
Shares of New York Times (NYSE: NYT) are up more than 2.3 percent Wednesday morning following an earlier upgrade from Sell to Neutral at Lazard. A $6 price target was removed.
Analyst William Bird cited New York Times improved net asset value and a recovering real estate market as catalysts for the upgrade, bolstered by the company's option to repurchase 21 floors of its building for a "well below market value" figure of $250 million.
Bird believes New York Times is likely to resume its dividends in 2014 at a 20 percent payout. Bird attributes the potential dividend restoration to increased pension funding of $140 million. The increase in funding stems from a 70 basis point increase in the 10-Year Treasury rate.
New York Times shares last traded at $11.94.
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