Rosenblatt Securities has launched coverage of USA TODAY Co., assigning a Buy rating and setting a $10.00 price objective, the broker-dealer said on Thursday. The company’s shares (NYSE: TDAY) were trading at $6.17 at the time of the report, slightly below a 52-week high of $6.22.
The $10.00 target implies potential upside of more than 60% relative to the recent trading level cited by Rosenblatt. The firm pointed to several catalysts that underpin its positive stance, with a focus on technology-driven revenue opportunities and the publisher’s ongoing digital transition.
Rosenblatt flagged forthcoming "Google/AI-driven paydays" as a meaningful potential source of market-capitalization expansion for the publisher. Specifically, the report referenced the prospect of AI large language model licensing arrangements that could alter the company’s traffic economics - a dynamic the firm summarized as having the potential to "transform zero click fears into click plus upside."
In addition to licensing prospects, Rosenblatt called out potential antitrust damages from Google as another element contributing to its constructive outlook for the media company. The firm also highlighted what it described as "call optionality" tied to USA TODAY’s path toward becoming a majority-digital enterprise, suggesting that the shift could reinforce the company’s core growth trajectory if executed as anticipated.
Separately, USA TODAY Co. has disclosed a multi-year strategic partnership with Meta. Under this collaboration, content from USA TODAY, more than 200 USA TODAY Network local publications, and USA TODAY Sports wires will be made available across Meta’s family of apps and devices. As a consequence, Meta’s AI news-related queries will incorporate information and links from USA TODAY and its network outlets, an arrangement intended to help users discover content aligned with their interests. Rosenblatt and market observers view the deal as an extension of USA TODAY Co.’s efforts to broaden its digital footprint and reach.
- Trading context: TDAY was quoted at $6.17, just under its 52-week high of $6.22.
- Performance: InvestingPro data show a roughly 50.12% price return for TDAY over the prior six months.
- Analyst thesis: Rosenblatt expects AI licensing opportunities and platform partnerships to provide material upside, and also cites possible antitrust recoveries as supportive to valuation.
The picture painted in Rosenblatt’s initial coverage centers on a combination of event-driven upside and structural digital transition, with the firm stressing several discrete levers - licensing, platform distribution, and potential legal recoveries - that could influence the company’s market value.