Share Prices & Company Research

Market News

16 Nov 2020 | 11:15

Berenberg downgrades Informa to 'hold'

(Sharecast News) - Analysts at Berenberg downgraded publishing firm Informa from 'buy' to 'hold' on Monday, stating it could now only see a "more limited upside" in the stock. Berenberg said that while it continues to believe that the events industry will bounce back "strongly" from the Covid-19 pandemic, it also thinks that this fact has now been priced into Informa's share price - now up by 40% from the 400.0p level at which the group raised capital in April.

The German bank, which valued the group assuming that pre-Covid-19 profitability in the events business can be achieved by 2023, did up its target price on the stock from 535.0p to 610.0p but said its analysis suggested that the aforementioned recovery was now "more or less priced in".

For further material upside to be achieved, Berenberg thinks fundamental re-rating would be required but, given that the pandemic had demonstrated the vulnerability of the events business, the analysts said it was "hard" to see why a re-rating was "justified".

"We think Informa is a high-quality business, but we now see more limited upside in the shares," concluded the analysts.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 15th July 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.