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Investing.com - Deutsche Bank has lowered its price target on GlobalData PLC (LON:DATA) to GBP1.70 from GBP1.95 while maintaining a Buy rating following a negative trading update from the company.
The trading update revealed reduced full-year margin guidance, with a slight downward adjustment to like-for-like revenue expectations, primarily due to second-half 2025 margin pressures.
Deutsche Bank has revised its adjusted fully diluted earnings per share forecasts downward by 14% for fiscal year 2025 and 3% for 2026, though it still anticipates improved second-half 2025 like-for-like revenue growth and margin recovery following sales force restructuring and merger and acquisition contributions.
GlobalData plans to hold a Capital Markets Day on November 24, which Deutsche Bank believes is necessary given recent merger and acquisition activity and operational changes in the business relative to near-term performance metrics.
Despite the downward revisions, Deutsche Bank views GlobalData’s subscription-driven revenue and earnings as structurally defensive, noting the company has an experienced management team and trades at a modest valuation compared to recently devalued business-to-business peers.
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