JPMorgan predicts 'overdue re-rating' at Informa
JPMorgan has reiterated its 'overweight' position on Informa Plc , predicting a "overdue re-rating" for the events, digital products and academic research stock as earnings momentum improves over the coming years.
In July, JPMorgan reinstated its positive stance on the shares following a period of restriction, giving the stock a 1,020p target price.
At the time, the bank highlighted potential steps for Informa's management over the next 24 months, including: a focus on organic growth; the potential disposal of academic research division Taylor & Francis; de-risking through deleveraging; and aligning remuneration to shareholder interests.
In a research note on Wednesday, JPMorgan said that, following recent discussions it has had with investors, shareholders are focused on: "a) the resiliency of the portfolio and ability to sustainably grow +5% through the cycle and b) the merits of a potential disposal of Taylor & Francis."
A 10-month trading update from Informa is expected in mid-November "where we will look for a reassuring update on forward bookings and visibility on 2026 [...] and reaffirmation of the FY25 guide to underpin growing confidence in the narrative", the bank said..
JPMorgan said it sees a "strong case for improving earnings momentum", with the bank predicting 10% growth in adjusted earnings per share between 2026 and 2028, which should drive the stock's re-rating to narrow its valuation discount to others in the sector.
Shares were up 0.2% at 865.8p by 1050 BST.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
