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Trusted Journalism And Digital Subscriptions Will Expand Global Reach

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NYT
AnalystConsensusTarget
Not Invested
Published 10 Nov 2024

Update shared on04 Sep 2025

Previous
AnalystConsensusTarget's Fair Value
US$62.25
6.4% undervalued intrinsic discount
04 Sep
US$58.24
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1Y
10.5%
7D
-1.5%

Analysts maintain a neutral stance on New York Times as strong digital subscription growth is offset by concerns that current valuation already prices in robust EBITDA gains and leaves little room for upside if growth slows, resulting in an unchanged consensus price target of $62.25.


Analyst Commentary


  • Core digital subscription revenue is sustaining mid-teens growth.
  • The current valuation already reflects expectations for double-digit EBITDA compound annual growth.
  • Risks remain to the share multiple if digital subscription growth slows.
  • Ongoing strength in the digital business justifies modest upward adjustment to the price target.
  • The stock maintains a neutral risk/reward profile despite positive subscription trends.

What's in the News


  • Activist investor Fivespan Partners, led by Dylan Haggart and Sarah Coyne (formerly of ValueAct Capital), has taken a stake in New York Times and is urging the company to leverage AI to grow its subscription base (Bloomberg).
  • Fivespan's push for AI adoption follows their prior experience leading ValueAct's investment in the Times (Bloomberg).
  • Amazon is set to pay New York Times $20M-$25M annually under a content licensing agreement related to AI (Wall Street Journal).
  • The Amazon deal covers access to a wide range of Times content, including news, cooking, and The Athletic, for training AI models and using content in Alexa and other Amazon products (Wall Street Journal).
  • The licensing revenue from Amazon will account for nearly 1% of the Times’s total 2024 revenue (Wall Street Journal).

Valuation Changes


Summary of Valuation Changes for New York Times

  • The Consensus Analyst Price Target remained effectively unchanged, at $62.25.
  • The Consensus Revenue Growth forecasts for New York Times remained effectively unchanged, at 6.7% per annum.
  • The Future P/E for New York Times remained effectively unchanged, at 24.70x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.