NEW YORK (TheStreet) -- Gannett (GCI) - Get Report stock coverage was initiated by analysts at JPMorgan with a "neutral" rating and a price target of $14.

This action comes as Tegna, the media company formerly called Gannett, today said that it completed the spin off of its publishing business, finalizing a strategy that had been in the works for nearly a year to protect its broadcasting and digital businesses from the decline in print advertising, USA Today reports.

The new Gannett comprises the former parent company's publishing assets, including flagship USA Today, community newspapers in 92 domestic markets, and the UK-Based Newsquest.

Tegna owns newspapers in 92 markets, and plans to acquire more papers to broaden its local advertising and marketing business.

On Monday, shares are slumping 3.09% to $14.45. 

Separately, TheStreet Ratings team rates GANNETT CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate GANNETT CO (GCI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GCI's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, GANNETT CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 90.8% when compared to the same quarter one year prior, rising from $59.16 million to $112.89 million.
  • You can view the full analysis from the report here: GCI Ratings Report