The New York Times (NYT) could continue to grow through its bundled digital subscriptions, advertising gains, video expansion, and potential AI licensing revenue, but recent stock outperformance and valuation expansion leave limited near-term upside, BofA Securities said in a note Wednesday.
The company is well-positioned in digital media after building a broader subscription business around news, lifestyle products and utility offerings through its All Access bundle. BofA expects revenue to grow 7% annually and adjusted operating profit to rise 14% annually from 2025 through 2028.
BofA said subscription revenue, which makes up nearly 70% of the business, provides recurring cash flow and visibility. Advertising could remain a growth driver, supported by stronger digital ad demand, improved monetization and engagement in areas such as Games and Sports.
The investment firm also said the company's video buildout and its AI licensing deal with Amazon could create new high-margin revenue streams over time.
BofA initiated coverage for The New York Times with a neutral rating and an $84 price objective, noting that valuation and risks such as potential AI-driven traffic disruption keep the risk-reward balanced.
Price: $81.08, Change: $-0.54, Percent Change: -0.66%