Market Overview

Gannett Using Acquisitions To Drive New Strategy

Gannett Using Acquisitions To Drive New Strategy
Related GCI
30 Stocks Moving In Thursday's Pre-Market Session
40 Biggest Movers From Yesterday

According to the note from Jefferies published Tuesday, the acquisition of ReachLocal by Gannett Co Inc (NYSE: GCI) for $156 million increases the company's digital presence and provides a way for it to shift away from former parent Tegna Inc (NYSE: TGNA)

"While the deal is expected to close in 3Q, RLOC will remain standalone until the expiration of GCI's agreement w/ TGNA (mid-2017). GCI's ongoing M&A should continue to drive the narrative; however, we remain cautious on the core business," wrote Jefferies.

Related Link: Tribune Investors May Have A Lot In Common With Cubs Fans

Gannett's financials will show nearly $1 billion digital revenue after the deal is closed, which represents almost one-third of the total sales. According to the analysts, while the core publishing business will maintain its dominance as a key focus for investors, digital will be more and more visible and trigger growth of the company.

The analysts kept their Hold rating unchanged. A current $17 PT assumes 6.1x F16E EBITDA.

At time of writing, Gannett traded down 1.62 percent on the day at $13.40.

Latest Ratings for GCI

Feb 2017Argus ResearchDowngradesBuyHold
Oct 2016MaintainsHold
Jul 2016JefferiesMaintainsHold

View More Analyst Ratings for GCI
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Price Target Reiteration M&A Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (GCI + TGNA)

View Comments and Join the Discussion!