Ascential rally has 'gone too far' worries Barclays

Market Buzz

Ascential rally has 'gone too far' worries Barclays

Tue, 12 September 2017
Article viewed 205 times
Ascential rally has 'gone too far' worries Barclays

(ShareCast News) - Sceptical of a 40% rise in its shares since the start of the year, Barclays has initiated coverage of events and exhibitions organiser Ascential with a cautious note, an 'underweight' rating and a 330p price target.
While acknowledging strong results last year, the removal of overhang from original sponsors, and the successful print disposal, as ample reasons for the strong re-rating since the IPO, Barclays viewed the price surge as having "run too far".

Analysts warned of "further risks" at Cannes Lions and Medialink as ad agencies suffer, also worrying about the cyclicality in the business that does not seem to be in the price.

Finally, Barclays three valuation methodologies all point to downside to the current price.

"Beyond Cannes, we cannot point to major "cracks" in the story," the analysts admitted. "But with exposure to a handful of assets, and sentiment positive, we see unfavourable risk/reward."

NASDAQ 100 Top Risers

Name Last Chg.% Time
O'Reilly Automotive Inc. 209.59 3.62 22:35
Liberty Interactive Corporation QVC Group 23.76 2.72 22:34
Paychex Inc. 59.75 2.68 22:35
Seagate Technology Plc 33.57 2.60 22:49
Lam Research Corp. 176.73 2.58 22:53

NASDAQ 100 Top Fallers

Name Last Chg.% Time
Tesla Inc 351.09 -4.20 23:10
Incyte Corp. 110.85 -3.65 23:04
Mattel Inc. 14.52 -3.20 23:01
NetEase Inc. Ads 271.61 -2.16 22:34
Kraft Heinz Co. 77.52 -1.89 22:35