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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Media

Citigroup says it's "when not if" you buy Informa shares

Analysts pointed to a "growing body of evidence" that a recovery in events and exhibitions will be "stronger and quicker" than the market expects

The question about buying Informa PLC (LON:INF) shares is "when not if", investment bank Citibank has told clients.

"While we think it is reasonable for investors to worry about the risk that 2021 consensus forecasts for Informa come down in the short-term, we think this potentially misses the bigger picture," Citi analysts said in a note on Monday.

They pointed to a "growing body of evidence", including proprietary survey work by the bank, that a recovery in the FTSE 100 group's events and exhibitions markets will be "stronger and quicker" than the stock market expects.

And while investors "will have to be patient", with the recovery not expected to come through to forecasts until the 2022 and 2023 financial years, the Citi team sees the upside to forecasts and valuation as "significant", or 40%-plus in other words.

A 'buy' rating was reiterated and Citi's price target was nudged up to 725p from 700p.

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