NYT Share Rating Downgraded To “Sell”

Bad news for the New York Times. News has been circulating this morning of the New York Times Company’s Banc of America rating being downgraded from “Neutral” to “Sell” and that their price target has dropped to $14 per share from $21.

BOA analyst Joe Arns also predicts the NYT will suffer from an abnormal drop in advertising in the upcoming recession:

“Under this scenario, we would expect New York Times‘ national advertisers to reduce spending in line with the industry, eliminating the advantage that the company has enjoyed in recent months in which luxury goods makers and retailers continue to grow their ad spend.”