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Investing.com - BofA Securities upgraded Baltic Classifieds Group PLC (LON:BCG) from Neutral to Buy on Monday, while raising its price target to GBP4.15 from GBP3.70.
The upgrade follows a recent sell-off in the stock, which BofA describes as "transitory market headwinds" that create an opportunity for long-term investors.
BofA Securities views Baltic Classifieds as offering "one of the most attractive mid-term growth profiles" in its sector, with a projected 17% five-year earnings per share compound annual growth rate.
The firm cited the company’s early-stage growth markets and strong market position as key factors supporting its positive outlook.
Baltic Classifieds currently trades at 32 times calendar year 2025 estimated price-to-free cash flow, which BofA notes represents a modest discount to peers.
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