GCICiti reassured by Informa update on "robust" trading
Citi has reiterated its 'buy' rating for after a "robust" trading update from the B2B publishing and events group this week, saying that shareholders should be reassured that underlying trends are strong.
Informa reported on Tuesday that overall organic growth trends over the first ten months of the year were in line with the first half, with double-digit organic growth guidance maintained.
The company also marginally raised its 2024 financial targets after accounting for the positive impact from the now-completed Ascential acquisition - and in particular Ascential's Money20/20 event which took place in late October - offsetting a slight drag from FX.
"Looking forward, the group has indicated continued momentum into 2025E with 1Q Markets organic growth at 5%+, which is encouraging in our view, but not necessarily massively different from VA consensus estimates," Citi said.
"Overall, we don't expect material changes to consensus forecasts in 2025E, but think the results will reassure that underlying trends will continue to be strong - and potentially much stronger than much higher rated peers. Reflecting this, we continue to have a favourable view and rate the group as a 'buy'."
The stock was down 0.4% at 841.4p by 1143 GMT.
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