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Investing.com - JPMorgan initiated coverage on NIQ Global Intelligence Plc (NYSE:NIQ) with an Overweight rating and a price target of $21.00 on Monday.
NIQ, formerly part of Nielsen Holdings, is described by JPMorgan as "the leader in global consumer product measurement and a primary system of record for CPG manufacturers."
The investment bank previously covered NIQ from 2012 until its sale to Advent International in early 2021, noting that the company has been "meaningfully transformed" during its four-plus years as a privately held company.
While JPMorgan acknowledges NIQ’s "heavy debt load and low free cash flow conversion," it believes these factors are "more than captured" in the stock’s current valuation of 9x EV/2026E EBITDA post-stock compensation.
The firm views NIQ stock as presenting "attractive value in the compounding growth Info Services sector," supporting its Overweight rating. According to InvestingPro Fair Value analysis, the stock is currently trading near its fair value, with multiple factors affecting its valuation including its significant debt burden and negative profitability over the last twelve months.
In other recent news, NIQ Global Intelligence has successfully refinanced $3.4 billion in debt facilities, extending the maturity of its loans by approximately 2.5 years to October 2030. This refinancing also reduced the interest rate spread on its loans, which could potentially ease the company’s financial obligations. Fitch Ratings upgraded NIQ Global Intelligence’s credit rating to ’BB-’ from ’B+’, citing strong revenue growth and effective cost-saving measures. Additionally, the company’s senior secured debt was upgraded to ’BB+’ with a Recovery Rating of ’RR2’.
In terms of analyst coverage, Baird initiated NIQ Global Intelligence with an Outperform rating, highlighting the company’s operational value-creation potential under a proven CEO. UBS also initiated coverage with a Buy rating, suggesting a 35% upside potential from the current price. Furthermore, NIQ Global Intelligence recently began trading on the New York Stock Exchange at $20.25 per share, slightly below its initial public offering price of $21.00. These developments indicate a period of significant activity for NIQ Global Intelligence.
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