The Seasiders have moved up to fifth in the JJB Sports Premiership after this comeback victory.
Richard Clarke (6) put City ahead with a penalty after Jim McMenamin fouled Stephen Garrett but McMenamin (17) fired home a leveller.
Clarke's (28) low volley restored Newry's lead only for Dominic Melly (40) to hit the top corner for 2-2.
Andy Morrow (62) sent a superb curling shot past keeper Paul Murphy before Marty Verner (90) sealed the points.
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