UPDATE: Citi Color On GCI Downgrade, Price Decrease

Citi, which downgraded shares of Gannett (NYSE: GCI).

“We continue to believe Gannett has an attractive asset base; however, in the near-term, there could be risks to estimates, and we don't see any non-operational catalysts benefiting the stock,” Citi writes.

“1Q11 guidance suggests stabilization is further away than previously anticipated. And, revenue pressure could come from two trends: 1) lower retailer ad spend to offset inflationary pressures and 2) lower auto dealer spend on production cuts and/or OEM cut backs on dealer incentives.”

Gannett closed Tuesday at $15.56.