UPDATE: Compass Point Starts Coverage on New Media Investment

In a report released Friday, Compass Point analyst Jason Stewart announces initiation of coverage on

with a Buy rating and price target of $18. Stewart explains the initiation, "We view shares of NEWM as an opportunity to invest in a viable business strategy with a clean balance sheet at a price that appropriately reflects well known industry challenges. While technological advancement and the availability of free information has negatively impacted the U.S. newspaper industry, local content providers such as NEWM are still highly regarded in the markets they operate in." NEWM provides a foot in the newspaper industry while valuing the progressive movement of digital media. The report also noted potential for cash dividends from free cash flow, possibly being the only dividend yielding public newspaper company. NEWM closed previously at $14.55 and opened back up Friday at $14.76.