Gannett Stock Upgraded To “Buy” From “Hold”

A glimmer of sunshine for the newspaper industry, or a validation of its worst practices? Newspaper giant Gannett’s stock was upgraded to “buy” from “hold” by an equity research firm.

The rating change didn’t come out of any great zeal for Web 2.0 innovation (see: the website for the Arizona Republic, its second-biggest paper), but because of Gannett’s notorious — but apparently successful — cost-cutting measures.

In July, Gannett confirmed the firings of more than 1,400 employees.

From Fitz & Jen:

Benchmark Co. upgraded its rating of Gannett Co. stock (NYSE: GCI) to “buy” from “hold” Monday, saying it’s impressed with cost-cutting and management at the nation’s largest newspaper publisher. Benchmark said the move follows Gannett’s upbeat dog-and-pony at the UBS conference with television strengthening and newspapers performing better than expected.

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