YouGov PLC appears “vulnerable” to a bid approach after a mixed interim update coincided with news that its chief executive had been ousted, analysts have said.
YouGov on Tuesday said chief executive Steve Hatch would step down immediately and be replaced by chair Stephan Shakespeare on an interim basis.
Shares had more than halved in value since Hatch took the helm in August 2023, dragged down by the likes of a profit warning last June.
YouGov separately flagged “modest growth on an underlying basis” over the six months to January and said plans for cost savings of £20 million were “on track”.
Panmure Liberum analysts noted the update was a “mixed bag,” with data product revenue said to have grown but trading in YouGov’s research division slowing.
“The numbers remain messy [...] and we are starting again on succession,” Panmure said as it cut YouGov’s share price target from 560p to 480p and stuck to a ‘hold’ rating.
“Valuation is the main attraction and the company seems vulnerable to a potential approach.”
Deutsche Bank reiterated a ‘buy’ rating in the meantime, though cut its share price target from 790p to 670p.
Revenue growth of 1% to +4% was projected for the year, against the 4% to 5% previously seen, while adjusted earnings per share were forecast to fall by 3% to 5%.
Shares climbed 3.2% to 387p on Wednesday.