S&P 500 eases slightly from fresh record high after stronger economic growth
On Wednesday, Deutsche Bank (ETR:DBKGn) analyst Gareth Davies revised the price target for Reach Plc (RCH:LN) (OTC: TNMRY) to GBP1.82 from GBP1.90, while maintaining a Buy rating on the company’s stock. This adjustment follows Reach’s publication of its financial results for the fiscal year 2024.
Reach Plc reported a revenue decrease of 4.2% to £538.6 million, which was slightly above Deutsche Bank’s projection of £535.6 million. The company’s adjusted operating profit reached £102.3 million, surpassing Deutsche Bank’s estimate of £97.5 million, and resulted in an adjusted earnings per share (EPS) of 25.3p, compared to the bank’s expectation of 22.3p.
The dividend per share remained unchanged at 7.34p, aligning with forecasts. Reach’s net debt position showed notable improvement, closing the year at £14.2 million, which was significantly better than Deutsche Bank’s anticipated £25.1 million. However, it’s important to note that this improvement was aided by working capital movements, which are expected to partially reverse in 2025.
Reach Plc’s performance indicates a stronger than anticipated set of results for the fiscal year 2024, particularly in light of the trading update released in January that had already set a positive tone for the company’s financial health.
The reduction in the price target reflects adjustments based on the latest financial data, while the Buy rating suggests that Deutsche Bank remains optimistic about the company’s stock performance going forward.
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