Financials
Moving in the right direction - Craig Huber points to improved pricing, better client retention and DNB's success in dealing with headwinds from underperforming legacy businesses. He has increased confidence in management achieving their medium-term organic ex-FX revenue growth target of 5-7% by 2026 (at the latest and likely could be sooner) and believes the current valuation (DNB trades at 9.7x/8.5x 2024/25(E) adjusted EPS or 9.6x/9.1x EBITDA) is too steep of a discount to other information service companies. Craig sees great risk-reward at these levels (>40% upside vs. 15% downside) and upgrades the stock to Buy.
Edition: 176
- 22 December, 2023