Compass Point Raises New Media Investment Group's Price Target

Here are five takeaways on Compass Point Research's note on New Media Investment Group Inc NEWM. The research firm updated the price target by to $25 from $20 and reiterated a Buy.

"1. Same-store revenue trends provide a foundation for future earnings growth & NEWM remains well positioned to grow shareholder value.

2. NEWM continues to successfully execute on its acquisition strategy. With substantial liquidity and a strong pipeline, we expect to see deal announcements over the next few months.

3. Same-store revenue increased 2.3% YoY driven by a 1% increase in advertising revenue, 2.1%, increase in circulation revenue 10.5%, increase in commercial printing and other revenue.

4. Advertising and circulation revenues are stable despite secular pressure.

5. Some Negatives: The company has experienced losses from continuing operations from over the past several years. If the company fails to achieve profitability in the future, it could affect the trading price of their Common stock and their ability to pay dividends and raise additional capital for growth."

Shares of Mew Media were trading down fractionally at $19.00 on average volume.

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