Informa (LON:INF) Stock Rating Reaffirmed as Buy by Berenberg Bank

Key Points

• Berenberg reaffirmed its “Buy” rating on Informa with a GBX 1,040 price target, implying 17.83% upside; analysts overall maintain a consensus “Buy” rating with a GBX 1,135 target.
• Informa agreed to acquire Clarion Events from Blackstone for approximately £2.24 billion, expanding its business-to-business events portfolio and supporting its strategy to focus on live events.
• The company plans to separate its Taylor & Francis academic publishing unit, but investors face potential leverage, integration and execution risks from the all-cash Clarion transaction.

Informa (LON:INF - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Berenberg Bank in a research report issued on Thursday, London Stock Exchange reports. They currently have a GBX 1,040 price objective on the stock. Berenberg Bank's price target indicates a potential upside of 17.83% from the stock's current price.

A number of other equities analysts have also commented on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a GBX 1,140 price objective on shares of Informa in a research note on Friday, July 31st. Citigroup increased their target price on Informa from GBX 990 to GBX 1,090 and gave the company a "buy" rating in a report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. decreased their target price on Informa from GBX 1,300 to GBX 1,285 and set an "overweight" rating for the company in a research report on Thursday, July 2nd. Six equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of GBX 1,135.

Informa Price Performance

Shares of LON:INF opened at GBX 882.60 on Thursday. The company has a market capitalization of £11.03 billion, a PE ratio of 51.61, a price-to-earnings-growth ratio of 0.75 and a beta of 0.68. The company has a debt-to-equity ratio of 64.99, a quick ratio of 1.70 and a current ratio of 0.55. The stock has a fifty day moving average of GBX 894.30 and a 200-day moving average of GBX 851.84. Informa has a one year low of GBX 719 and a one year high of GBX 1,000.

Informa (LON:INF - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported GBX 26.70 EPS for the quarter. Informa had a net margin of 5.43% and a return on equity of 3.90%. As a group, equities analysts anticipate that Informa will post 59.3240265 EPS for the current fiscal year.

Key Headlines Impacting Informa

Here are the key news stories impacting Informa this week:

• Positive Sentiment: Informa agreed to acquire Clarion Events from Blackstone for approximately £2.24 billion (about $3 billion). Clarion operates major business-to-business events including ICE Barcelona, IFA Berlin and other exhibitions, expanding Informa’s scale and event portfolio. Blackstone agrees $3.0bn sale of events business Clarion to Informa
• Positive Sentiment: The deal supports management’s plan to make live B2B events the center of Informa’s strategy. Combining Clarion with Informa could create operating efficiencies, broader customer reach and greater control of important industry events. Informa goes all-in on events with Clarion deal
• Positive Sentiment: Informa also plans to separate its Taylor & Francis academic publishing business. A more focused events company could receive a higher valuation and give management greater strategic clarity, although the separation remains subject to implementation and approvals. Informa to acquire Clarion and review Taylor & Francis separation
• Neutral Sentiment: The acquisition would give one operator control of both Clarion’s ICE Barcelona and Informa’s IFA Berlin, potentially improving coordination across major international events. However, the commercial benefits will depend on successful integration and event performance. Informa's Clarion acquisition gives single operator control
• Negative Sentiment: The all-cash transaction is substantial relative to Informa’s existing business, increasing near-term financial and execution risk. Investors may be concerned about leverage, integration costs and whether Clarion’s growth and synergies justify the purchase price.

Informa Company Profile

Our events, digital products and academic research services connect specialists with knowledge, helping them learn more, know more and do more. We do this in dozens of specialist markets and subject matter categories, including in Healthcare & Pharma, Technology, Finance, Education, Marketing, Health & Nutrition, Foodservice, and many more. And we do this through a range of products and services, including major live events, specialist media and content, expert research articles, books and open research platforms, accredited training, buyer discovery services, and digital demand and lead-generation services.

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