TSX lower after index logs fresh record closing high
Investing.com - Bernstein upgraded Wolters Kluwer NV (AS:WKL) (OTC:WTKWY) from Market Perform to Outperform, while adjusting its price target to EUR140.00 from EUR160.00.
The upgrade comes despite a modest reduction in the firm’s long-term growth assumptions for the information services company. Bernstein raised its target free cash flow yield range by 50 basis points to 3.5%-4.5%.
Bernstein characterized the summer derating of Wolters Kluwer as "extreme," noting that the company lost approximately EUR3.5 billion in value due to concerns about its Clinical Solutions business.
The firm also addressed CEO transition risk, stating that such concerns are typically magnified when a CEO is new to the business, the company has been underperforming, or has a stretched balance sheet. Bernstein indicated none of these factors apply to Wolters Kluwer.
Bernstein expressed confidence in incoming CEO S. Caywood’s credentials and expects the perceived transition risk to decrease as the leadership change approaches.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.