Gabelli Lowering Estimates On Gannett

Gabelli & Co. is lowering its estimates on Gannett Co GCI, but it keeping its Buy rating on shares. In a note to clients, Gabelli & Co. writes, "We are lowering our 2011 and 2012 EPS estimates to $2.10-2.15 and $2.25, from $2.20 and $2.45 respectively, following 2Q results. Gannett should produce about $650 mm of free cash flow from operations (before dividends) in 2011, and net debt should approach $1.5 bn at yearend from $2.17 billion in 2010, bringing leverage to about 1.3x. Although the tepid economic rebound and innate conservatism might temper mgmt actions, we think that GCI will execute against the reinstated buyback authorization." Shares of GCI closed at $13.01 yesterday.