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(Sharecast News) - JPMorgan has reiterated its 'overweight' position on Informa, predicting a "overdue re-rating" for the events, digital products and academic research stock as earnings momentum improves over the coming years.
In July, JPMorgan reinstated its positive stance on the shares following a period of restriction, giving the stock a 1,020p target price.
At the time, the bank highlighted potential steps for Informa's management over the next 24 months, including: a focus on organic growth; the potential disposal of academic research division Taylor & Francis; de-risking through deleveraging; and aligning remuneration to shareholder interests.
In a research note on Wednesday, JPMorgan said that, following recent discussions it has had with investors, shareholders are focused on: "a) the resiliency of the portfolio and ability to sustainably grow +5% through the cycle and b) the merits of a potential disposal of Taylor & Francis."
A 10-month trading update from Informa is expected in mid-November "where we will look for a reassuring update on forward bookings and visibility on 2026 [...] and reaffirmation of the FY25 guide to underpin growing confidence in the narrative", the bank said..
JPMorgan said it sees a "strong case for improving earnings momentum", with the bank predicting 10% growth in adjusted earnings per share between 2026 and 2028, which should drive the stock's re-rating to narrow its valuation discount to others in the sector.
Shares were up 0.2% at 865.8p by 1050 BST.
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