SocGen upgrades DMGT as it highlights less cope for anymore bad news
Updated : 10:06
Societe Generale upgraded Daily Mail & General Trust to ‘hold’ from ‘sell’ following the company’s results on Wednesday, saying there is significantly less scope for bad news from here.
“The 5% share price decline yesterday brings the total share price collapse to 30% since January 2014, and underperformance versus European media to -48%,” said SocGen.
The bank said the full year results marked another disappointment for the share price, with guidance for 2016 implying another earnings per share downgrade for consensus.
SocGen cut its FY 2016 EPS estimate by 9% and its 2017 forecast by 7%.
It said the share price collapse was largely justified by a much-needed reality check on the valuation of its stake in Zoopla, which had bolstered the stock 17% in late 2013.
In addition, it pointed to deteriorating trading at Euromoney through FY15.
“With those negatives better reflected in the share price, the poor momentum is better balanced,” said the bank, which kept its 725p price target on the stock unchanged.
At 0935 GMT, DMGT shares were up 3.9% to 695p.