Rosenblatt has raised its price target on Quad/Graphics (NYSE:QUAD) to $9.80, up from $8.20, while keeping a Buy rating on the company. The firm made the move after Quad/Graphics released its fourth-quarter fiscal 2025 results and highlighted progress on several restructuring initiatives.
InvestingPro analysis notes the stock was trading at $7.36, indicating it may be undervalued relative to Rosenblatt's revised target. Rosenblatt's $1.60 increase in the target price reflects a combination of factors the analyst house says improve the company's balance sheet and cash-generation outlook.
Drivers behind the revision
- Debt reduction completed last year, with the company now carrying a debt-to-equity ratio of 3.45.
- An expanded program of printing plant closures and related asset sales that Rosenblatt expects to generate proceeds.
- Trailing-12-month EBITDA of $183.4 million, which feeds into Rosenblatt's valuation model for adjusted 2026 EBITDA.
Rosenblatt applies a sum-of-the-parts valuation in arriving at its target. The approach begins with projected debt levels as the company exits 2025, then adds expected free cash flow for 2026, anticipated proceeds from the asset-sale program that is underway, and applies a 4.0x enterprise value multiple to 2026 adjusted EBITDA. Rosenblatt says that framework is unchanged from its prior analysis; the higher price target is driven by the company's execution on debt reduction and its progress advancing plant closures and disposals.
The analyst firm characterizes Quad/Graphics as a low-expectations printing business in the midst of a multi-year transformation intended to move the company toward a growth profile. As part of that restructuring, the company is actively executing asset sales and related operational reductions.
Rosenblatt also references expectations for improved profitability: an InvestingPro note attached to the coverage indicates net income is expected to increase this year, a development Rosenblatt says supports the narrative of a transition under way.
Corporate and governance moves
Quad/Graphics announced a leadership change alongside the financial headlines. Dave Honan has been promoted to President while maintaining his responsibilities as Chief Operating Officer. Joel Quadracci will continue in his roles as Chairman and Chief Executive Officer, with a stated focus on long-term strategy and innovation.
In a separate move that affects shareholder returns, Quad's Board approved a 33% increase in the quarterly dividend, lifting it from $0.075 to $0.10 per share. That change boosts the annualized dividend from $0.30 to $0.40 per share and is scheduled to benefit shareholders on March 13, 2026.
Outside of Quad/Graphics, Output Services Group (OSG) announced additions to its executive team. Doug O'Reilly joins as Chief Information Officer and will be responsible for technology strategy, platform development and security. Mark Marin was appointed Chief Revenue Officer. Rosenblatt did not link these OSG appointments to its valuation of Quad/Graphics, but the report noted them as part of broader sector-level leadership activity.
What the update means for investors
Rosenblatt's revised target and Buy stance rest on measurable progress in lowering leverage and monetizing non-core assets, coupled with an EBITDA base that the firm projects can be turned into improving free cash flow in 2026. The higher dividend and management promotions provide additional signals about capital allocation and governance priorities, but Rosenblatt's valuation remains tied to execution on plant closures, asset sales and deleveraging.
Investors seeking a deeper dive can consult the firm’s Pro Research Report on QUAD, which Rosenblatt references for detailed assumptions and modeling inputs.