Deutsche Bank cuts MONY Group target to GBP2.50, keeps Hold rating

Published 18/02/2025, 10:52
Deutsche Bank cuts MONY Group target to GBP2.50, keeps Hold rating

On Tuesday, Deutsche Bank (ETR:DBKGn)'s analysis led to a revised price target for MONY Group (MONY:LN), now set at GBP2.50, a decrease from the previous GBP2.60, while maintaining a Hold rating on the shares. The adjustment follows the company's announcement of its full-year results, which slightly exceeded expectations.

MONY Group reported a revenue increase of 2% to £439.2 million, marginally surpassing Deutsche Bank's projection of £438.5 million. This was attributed to stronger performance in the Money, Home Services, and Travel sectors, which compensated for a weaker than expected showing in the Insurance and Cashback sectors. Adjusted EBITDA reached £141.8 million, again outperforming the forecast of £139.6 million by Deutsche Bank, even after accounting for a £3 million irrecoverable VAT provision and related costs. Notably, £1 million of this provision related to 2023 was not adjusted in previous results as it was considered immaterial.

These positive results translated into a basic adjusted earnings per share (EPS) of 17.1 pence, which is higher than Deutsche Bank's estimate of 16.7 pence. The declared dividend matched expectations at 12.5 pence. MONY Group's strong cash flow has led to a slight net cash balance on the balance sheet at the end of the year, aligning with projections.

In light of the robust balance sheet, MONY Group has announced a £30 million share buyback program. This move is indicative of the company's confidence in its financial stability and commitment to delivering value to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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