NEW YORK (TheStreet) -- New York Times Co. (NYT) was upgraded to "overweight" from "equal weight" by analysts at Evercore who also increased the stock's price target to $18.50 from $16.50 in a note released Thursday.
Evercore listed the media company's new four week $8 subscription price as a reason for the upgrade. The new pricing scheme will attract a younger more diverse group of subscribers in the firm's opinion.
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"We believe the new low-priced tier is potentially transformative. A new, low-priced digital tier...has the potential to draw in a new, younger pool of subscribers, transform the model and attract new advertisers while adding to revenues and earnings." Evercore said in a client report.
"We have modeled the three new price plans through 2018 and believe they will add significantly to revenues and earnings, both near-term and longer term," the note concludes.
The New York Times stock closed down 0.6% to $16.19 on Wednesday.
TheStreet Ratings team rates NEW YORK TIMES CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW YORK TIMES CO (NYT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."