YouGov PLC (AIM:YOU)’s strong full-year update on Tuesday morning hints at the return of companies’ spending on technology after a tough few years, analysts have said.
Following the results, which saw shares in the research and data analytics group soar, both Stifel and Liberum analysts expressed backing for YouGov.
YouGov had reported a 63% rise in adjusted pre-tax profit to £56.4 million for the year to July, alongside 71% growth in per-share earnings to 40.5p.
“We continue to see good potential for sustained double-digit earnings growth,” Stifel said.
“Its first-party data offer, panel expansion and the new self-serve products” were all highlighted as potential drivers by the bank.
YouGov’s own reassurance that demand seemed to be recouping was also picked out by the two banks, given a softer second half of this year.
“While a second half weighting to growth adds earnings risk, it is good to hear that tech spend is starting to normalise,” Stifel continued.
Following the update, Liberum offered a share price target of 1,420p for YouGov, marking a prospective rise of over 100% from Monday’s closing value.