Deutsche Bank reiterates buy rating on Informa stock citing growth outlook

Deutsche Bank (ETR:DBKGn) reiterated its Buy rating and £10.00 price target on Informa Plc (LSE:LON:INF) (OTC:IFJPY), currently valued at $14.09 billion by market cap, ahead of the company’s Annual General Meeting scheduled for Thursday, June 19. According to InvestingPro data, the stock trades at a P/E ratio of 36.45x, suggesting a premium valuation.

The research firm maintained its forecasts ahead of Informa’s first-half results, noting that strong business-to-business like-for-like growth and Academic digital/AI deals could potentially offset weakness in the U.S. dollar. The company has demonstrated solid performance with 11.4% revenue growth in the last twelve months.

Deutsche Bank described Informa as a "well-focused global specialist B2B business" that offers attractive through-the-cycle like-for-like growth, high margins, and strong cash flow at what it considers a modest valuation.

The firm acknowledged near-term geopolitical concerns but suggested the current uncertainty presents "a good entry point for a long-term growth story."

Informa, which operates in the business intelligence and events sectors, is holding a Capital Markets Day Tuesday at the Cannes Lions International Festival of Creativity.

In other recent news, Deutsche Bank reaffirmed its Buy rating on Informa Plc with a price target of GBP10.00. The bank’s analysts emphasized Informa’s transition into a more focused global specialist in B2B services, highlighting its potential for consistent growth, high margins, and strong cash flow. They noted that despite geopolitical concerns and macroeconomic uncertainty, Informa is well-positioned for long-term growth. Several upcoming events, such as TechTarget (NASDAQ:TTGT)’s Annual Report release and Informa’s Annual General Meeting, are seen as potential catalysts for the company’s stock. These events may provide opportunities for Informa to showcase its strategies and performance, potentially influencing investor sentiment. The company is expected to drive growth and profitability through its focus on delivering specialized content and connectivity for businesses. Deutsche Bank’s analysis suggests that these developments could positively impact Informa’s valuation. Investors will be closely monitoring these events for further insights into the company’s direction and financial health.

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