Berenberg slashes YouGov price target

Berenberg slashed its price target on YouGov on Thursday to 1,200p from 1,350p after the company warned that full-year profits and revenue will be lower than expected due to slow demand in its data products division.

The company said that since its half-year results, sales bookings have been lower than expected. As a result, it now expects reported revenues for FY24 to be around £324m to £327m.

Berenberg noted that the mid point of the range is 5% below consensus expectations.

"In line with our stated strategy, the company had invested in the business to set up for an acceleration in growth in H2," YouGov said. "While we have seen an improvement in the second half, the growth was below expectations; therefore we now expect full-year group adjusted operating profit to be £41-44 million."

The mid point of the range for adjusted operating profit is 32% lower than consensus estimates, Berenberg said.

Berenberg said it was moving its forecasts to the bottom of the range and reducing its FY24 revenue and adjusted EBIT forecasts by 4% and 37% respectively, hence the target price cut.

The bank said: "Management commented that it will look to take action on costs in FY25E and therefore we anticipate a margin recovery from the trough margin in FY24E. In terms of FY25E estimates, we reduce our revenue, adjusted EBIT and adjusted EPS by 5%, 18% and 19% respectively."

Berenberg kept the shares at ‘buy’.