Berenberg has downgraded its rating for events publishing group Ascential PLC (LON:ASCL) because it believes the firm’s earnings are unlikely to improve in the near term.
The German bank’s analysts cut their stance on the FTSE 250-listed group to ‘hold’ from ‘buy’ and set its price target at 400p, warning about 'risks on the horizon' for the firm.
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In a note to clients, Berenberg's analysts explained: “Given specific brand dynamics and a possible sale of part of the company’s exhibition business leaving an almost 18% gap in group EBITDA, we believe Ascential may look to buy itself the growth that investors have become accustomed to.”
In lunch-time trading, Ascential’s shares were down 2.8% to 408.6p.