These are top 10 stocks traded on the Robinhood UK platform in July
On Thursday, Raymond (NSE:RYMD) James analyst Patrick O’Shaughnessy adjusted the price target for Dun & Bradstreet (NYSE:DNB) shares, reducing it to $14.00 from the previous $19.00, while still maintaining a Strong Buy rating on the company’s stock. The revision follows Dun & Bradstreet’s fourth quarter financial performance which did not meet expectations, showing negligible organic revenue growth.
O’Shaughnessy noted that the lackluster results in the fourth quarter of 2024 might have been influenced by the company’s ongoing strategic review and other factors, which he believes could be temporary. Despite maintaining impressive gross profit margins of nearly 64%, the company’s performance has been mixed. However, he expressed concern over the company’s failure to anticipate these challenges, considering it as significant as the quarter’s performance itself. InvestingPro subscribers can access 7 additional key insights about DNB’s financial health and market position.
Despite the disappointing fourth-quarter results and initial guidance for 2025, O’Shaughnessy reaffirmed the Strong Buy rating. His continued positive outlook is based on the potential for value creation through mergers and acquisitions, with a decision expected in the first quarter of 2025. He also mentioned that, even when evaluating Dun & Bradstreet on its own merits, the current valuation does not fully reflect the company’s fundamental growth prospects, despite its issues.
The analyst expressed frustration with the company’s recent performance, characterizing Dun & Bradstreet as a "but for" company, implying that its results could have been better if not for several stated reasons. Nonetheless, the belief in the company’s underlying value and the potential for strategic corporate actions has led to the decision to maintain the Strong Buy rating, even with a reduced price target.
In other recent news, Dun and Bradstreet reported its fourth-quarter 2024 earnings, which fell short of expectations for both earnings per share (EPS) and revenue. The company posted a modest revenue increase of less than 1%, totaling $632 million for the quarter, while full-year revenue reached $382.002 million, marking a 3% growth. Adjusted EBITDA for the quarter was $260 million, slightly down by $600,000, though the full year saw a 4% increase to $927 million. Analyst projections had anticipated higher figures, with EPS at $0.30 missing the forecast by $0.02 and revenue falling short by $26.68 million. In terms of future guidance, Dun and Bradstreet projects revenue growth between 2.5% and 5% for 2025, with an adjusted EBITDA range of $955 million to $985 million. The company is also aiming for 5% to 7% organic growth in the medium term. Meanwhile, the strategic review process continues, with potential impacts on revenue as the company explores various options. Despite these challenges, Dun and Bradstreet remains focused on leveraging its AI-powered solutions and risk analytics to drive long-term growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.