Gannett Co. Inc. (NYSE: GCI) often is considered to be one of the down-and-out old-media players. So when you see an analyst upgrade the stock, it tends to stand out from your normal analyst upgrades and downgrades. The team at the independent research firm Argus has upgraded the stock to Buy from Neutral and assigned a $25 price target for what is becoming growth on top of value.

Argus is not focused on print media here. The firm said that Gannett’s digital businesses are the future of the company, even if those may still need another four or five years to account for the majority of sales. Argus is maintaining its 2013 earnings estimates of $2.28 per share in 2013 and $2.60 per share in 2014, so at a $20.80 share price that generates forward earnings multiples of 9.0 for 2013 and only 8.0 for 2014.

Argus calls Gannett a stock with an attractive valuation, a high dividend yield and more positive earnings growth prospects. The digital operations were put at 28% of total revenue now, and that is a gain of three full points from the prior period. Argus expects that the digital operation revenues will overtake the print revenues in the not-too-distant future.

On broadcasting revenue the firm said:

Broadcasting segment revenue rose 8.7% year-over-year to $191.6 million, down significantly from 43.9% growth in 4Q12 and 36% growth in 3Q12. Television revenue rose 8.5% to $185.5 million, driven by a 58.7% increase in retransmission revenues. Broadcasting operating income rose an impressive 15.2% to $83.7 million.

The only real caveat is that Argus admits that shares will suffer if the ongoing move to digital begins to slow. Gannett shares closed at $20.80, against a 52-week range of $12.17 to $22.21. The Wall Street consensus price target is only $21.61, and the street-high price target is $26 on the stock. As a reminder, Gannett has been a long-time position in our Warren Buffett and Berkshire Hathaway stock holdings.

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