On Monday, Deutsche Bank (ETR:DBKGn) adjusted its outlook on shares of YouGov PLC (LON:YOU:LN), a global research and data analytics group, with a revised price target of GBP7.90, decreased from the previous GBP8.50. Despite the reduction, the firm continues to endorse a Buy rating on the company's shares.
The adjustment follows YouGov's financial performance which, according to the analyst, surpassed the consensus for fiscal year 2024. The positive outcome was attributed to phasing from GFK/CPS and unadjusted figures, which were described as unhelpful.
Investor sentiment has been cautious due to a profit warning issued on 20 June. However, a pre-close update on 6 August provided a slightly more optimistic revenue and profit guidance, coupled with an explanation for the earlier downgrade and the introduction of new cost savings projected at around GBP20 million.
The fiscal year 2024 results exceeded both the updated guidance and Deutsche Bank's forecasts. The analyst suggests that YouGov's shares present good value, contingent on the company's ability to restore confidence in its like-for-like growth and consistent performance. This restoration of trust, however, is expected to require time.
The earnings forecast for YouGov has been slightly adjusted downward to GBP7.90 from GBP8.50, based on a modestly lower median peer business-to-business/data 2025 expected enterprise value/earnings before interest and taxes multiples, now standing at 19.1 times. YouGov is being valued at a 20% discount to this benchmark.
The report highlights several key risks for YouGov, including financial controls, execution risk, and the rollout of product development and new initiatives, in addition to macroeconomic pressures. These factors are crucial in evaluating the company's future performance and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.