- YouGov
- 06 August 2024 10:51:38
Source: Sharecast
Berenberg noted that after YouGov's profit warning on 20 June, management updated guidance for FY24, with its performance now expected to be "slightly ahead" of revised guidance at £327.0m-330.0m in revenue and adjusted underlying earnings of £43.0m-46.0m - 1% and 5% ahead of previous guidance, respectively.
Given the relatively lower expectations, YouGov said it would implement a cost-savings programme, which will deliver an annualised saving of £20.0m by FY26, with 70% to be realised in FY25.
In terms of FY25, YouGov expects its performance to be in line with current market expectations. However, the German bank lowered its FY25 revenue and adjusted-EBIT forecasts by 2% and 9%, respectively.
"Shares are trading on a 11.7x FY25E price-to-earnings ratio and a FY25E free cash flow yield of 9.4%. We reduce our price target to 810.0p (from 1200.0p), predominantly reflecting more conservative assumptions to outer year growth and margins. The implied upside to our new price target is circa 85%," said Berenberg, which stood by its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com