Barclays raises target on Informa shares, citing stable earnings outlook by Investing.com
On Tuesday, Barclays made a change to its price target on shares of Informa Plc (INF:LN) (OTC: IFJPY), raising it to GBP9.80 from GBP9.75. The company maintained its overweight rating on the stock.
The revision reflects a consistent outlook for the company’s profits, despite a slight year-over-year dip in margins in the first half of 2024 caused by a variety of factors including timing and hybrid effects.
According to the company, the expected margin contraction is temporary. In the full year, the outlook is always positive with expected progress. Factors influencing this forecast include the cyclical nature of annual events, currency fluctuations, and changes in minority interest rates. These factors are expected to stabilize the company’s adjusted earnings per share (EPS) year over year.
The analyst’s statement gave a clear expectation of stability in the near term and strong growth in the last half of the year. “We’re modeling a slight yoy contraction in 1H24 margins due to some timing and compounding effects but we continue to see positive growth for the FY. With two-year, timing effects, FX and minority accruals, our adjusted EPS is stable.”
In the second half of 2024, Barclays is confident in Informa’s ability to deliver strong EPS growth. This optimistic view is based on the company’s ability to navigate the various factors that are expected to impact its financial performance in the short term.
Investors and market watchers will likely monitor Informa’s performance closely to see if the company meets or exceeds expectations set by Barclays’ target price and ratings. A company’s ability to achieve this growth will be an important metric for evaluating its financial health and market condition.
In other recent news, Informa Plc, a leading international events, intelligence, and scholarly research group, has been in the spotlight as Berenberg raised its price target on the company’s shares to £10.10 from £9.75, maintaining a “Buy” rating “.
The company highlighted the consistent single-digit growth of Informa and expects a further increase in the share price, despite the challenges in the company’s investment case.
Berenberg notes that the disagreements have resulted in Informa not being viewed well in the market, but they expect the stock price to rise as the company continues to perform.
Informa’s first-half results, which are expected to show lower earnings per share (EPS) year-on-year, are expected at the end of July. This forecast is due to a strong comparative period from the previous year. These upcoming results will be closely watched by investors for indications of the company’s financial health and performance.
Berenberg’s revised target price reflects a modestly optimistic view on Informa stock, raising confidence in the company’s ability to navigate uncertain markets and capitalize on its growth potential. This is among the latest developments of Informa Plc.
InvestingPro Insights
Informa Plc (OTC: IFJPY) continues to demonstrate financial stability and potential for investor returns, as evidenced by the latest data and analysis from InvestingPro. With a market capitalization of 14.31 billion and a trailing twelve-month P/E ratio of 22.75, the company demonstrates its ability to maintain profitability and investor interest. The company’s revenue growth of nearly 41% over the past twelve months, through Q4 2023, underlines its ability to generate revenue.
InvestingPro Tips highlights that Informa’s management has been actively engaging in share buybacks, indicating confidence in the company’s value. Additionally, the company is known for its high shareholder yield and low price volatility, which may appeal to investors looking for stable returns. However, it is important to note that short-term liabilities exceed liquid assets, which may indicate the need for careful financial management in the near future. With the stock trading near a 52-week high and analysts predicting a profit this year, Informa is well positioned in the market.
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