Proactive Investors - Run By Investors For Investors

Daily Mail downgraded on slowdown fears

Liberum downgraded the Daily Mail to 'sell' with a 685p target
daily mail
The broker thinks the problem may be structural not cyclical

City broker Liberum Capital has downgraded its view of Daily Mail and General Trust PLC (LON:DMGT), moving to ‘sell’ from ‘hold’.

Explaining the downgrade, analyst Ian Whittaker said: “It is a tricky call as management are taking the right steps and the company's net cash position gives it firepower to reshape its business.

Decline more structurally driven?

“However, numbers for 2019 are under pressure from rising print prices and, less so, slowness in events.”

“We also have concerns MailOnline’s decline in top-line growth is maybe more structurally, than cyclically, driven.”

With a price target of 685p, the stockbroker sees 5% downside to the current price of 725.5p.

Whittaker added: “MailOnline’s slowing growth has been blamed on cyclical factors but we think it is more structurally driven namely the shift in Online advertising to video, where it is less prominent.”

View full DMGT profile View Profile

Daily Mail and General Trust Timeline

Newswire
September 27 2018

Related Articles

books
May 22 2019
Here we take a closer look at Bloomsbury Publishing PLC (LON:BMY)
marketing
June 26 2019
Speaking in April, Next’s chief executive Tim Dyson said the company had “lots of scope” for acquisitions in the coming year
clapperboard
July 03 2019
At the Completion Contract business there have been lower volumes and the average budget per film has reduced

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use