Informa PLC (LSE:INF) has already had a solid run, but Deutsche Bank reckons there is more to come.
The broker has raised its price target on the exhibitions and business information group from 1,000p to 1,140p and kept its 'buy' rating, pointing to steady growth, strong cash generation and a more resilient events business than many give it credit for.
Ahead of a trading update covering the first ten months, due on 11 November, Deutsche Bank sees “continued near-term positive momentum”.
The bank also flags Informa’s capital markets day in Dubai later in the month as a potential catalyst, arguing that it should “help underpin the more attractive mid-term sustainable growth investment case”.
Informa’s core events arm remains the driver. Live conferences and exhibitions have largely shrugged off recent economic uncertainty, and margins are still moving higher.
The company is now seen as less exposed to short-term macro swings than in the past, helped by a more balanced mix of recurring data and content revenues alongside its physical shows.
The numbers are equally supportive. Deutsche Bank forecasts free cash flow of more than £900 million next year, enough to fund organic investment, acquisitions or more share buybacks.
Its sum-of-the-parts valuation now incorporates forecasts rolled forward to 2026 and a slightly higher multiple for the events division, reflecting what it calls “a more sustainable looking business model”.
With shares changing hands for 970p, Informa still trades below Deutsche's new target, leaving scope for further upside if management delivers on both the near-term momentum and the longer-term growth story.