USA Today publisher Gannett shares tumble after J.P. Morgan downgrade

Shares of USA Today publisher Gannet Co., Inc. fell 7% on Friday morning to mark its biggest one-day decline since February, after J.P. Morgan downgraded the stock to underweight from neutral.

“Shares have been relatively stable recently despite ongoing concerns regarding print circulation and advertising trends,” wrote analyst Alexia Quadrani in a note. “Furthermore, our last several earnings revisions have been negative and we remain concerned about the outlook for both print circulation and advertising in an environment with rising newsprint costs,” she added.

Gannett GCI, -7.47% is well-positioned among local print media groups; it has a strong national brand in the USA Today Network and increasing scale from recent acquisitions such as ReachLocal, which Gannett purchased in 2016.

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