Axel Springer: UBS upgrades 'sell' rating
(CercleFinance.com) - An analyst at UBS today said that, in a context of positive momentum and even though he remains cautious in the medium and long term, he is upgrading his previous “sell” rating on the Axel Springer share to "neutral".
"Short-term momentum has turned positive for 3 reasons: 1) Axel Springer expects Classifieds organic growth to inflect in Q418 to low double digit vs +9.8% in Q318, driven by Jobs and SeLoger; 2) the Jobs vertical will see significant margin expansion in Q418 post declines ytd, benefitting from lower marketing spend; and 3) Business Insider revenue growth ahead of mgmt. expectations," UBS says in its report.
Although "we are unsure this momentum will continue into 2019," the analyst reinstates his target price of 58 euros for the share of the leading pan-European classifieds company.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Short-term momentum has turned positive for 3 reasons: 1) Axel Springer expects Classifieds organic growth to inflect in Q418 to low double digit vs +9.8% in Q318, driven by Jobs and SeLoger; 2) the Jobs vertical will see significant margin expansion in Q418 post declines ytd, benefitting from lower marketing spend; and 3) Business Insider revenue growth ahead of mgmt. expectations," UBS says in its report.
Although "we are unsure this momentum will continue into 2019," the analyst reinstates his target price of 58 euros for the share of the leading pan-European classifieds company.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.