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(Sharecast News) - JPMorgan Cazenove reinstated coverage of Informa on Tuesday with an 'overweight' rating following a period of restriction.
The bank, which set a price target of 1,020p, said the group has transitioned through 10 years of building a leading B2B growth platform, with management's new 2025-2028 programme, One Informa, centred on maximising the value of the portfolio.
JPM said: "With focus now on the existing Live B2B Events business and simplification of the operational infrastructure, we see the company setting up for improved earnings momentum: organic revenue accelerating to JPMe +6% (CAGR25-28E), progressive margin expansion (to 29.5% in FY28E), and reduced financial leverage, driving circa 10% adjusted EPS growth, with upside on accretion through ongoing (and higher) cash returns to shareholders."
The bank argued that in order to unlock value and drive an "overdue" re-rating of the shares there are a number of steps management could take over the next 12 to 24 months.
JPM pointed to a potential increased focus on organic versus inorganic execution, the possible disposal of Taylor & Francis, de-risking through deleveraging, and further aligning remuneration to shareholder interests.
"Paired with improving near-term operational performance, we argue for both: 1) ongoing earnings upgrades (JPMe FY26/FY27 adjusted operating profit 1%/3% ahead of consensus) and 2) a further narrowing of the valuation discount to peers," it said.
At 1605 BST, the shares were up 2% at 865p.
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