ERM.L Share Price (ERM)

For the record Investec has ERM's target price at £12.50 and Peel Hunt has it at £12.35..

ERM. Recent Share price weakness, suggests ERM is undervalued – two thirds of revenues are in US$, which since last year is stronger against GBP, this could lead to adj. revenue improvement of 5%. Coupled with strong balance sheet – net debt at £37m is c0.3times EBITDA, means there is room for added value acquisitions. The big acquisition in July 2014 was the annual event - Indaba, the African Mining show. This event was held in Feb 2015, which is the first time ERM will benefit from the event, as last year they only reported overhead costs. ERM is expected to breathe new life into the event and is expected to generate revenues of over £10m and profits of £5m. In addition, ERM appointed a new head of training last year, so we can expect to see an improvement in both revenues and margins. There is much to be positive about.

Advertising revenue declined by 8% at constant current to 11.2m and subscriptions declined 2% at constant currency to 49m. The decline in subscription revenues was described as being in line with the gradual decrease in growth rates experienced since the end of 2011. The decline in advertising was described as being consistent with a trend seen in the second half of financial year 2012. Net debt as of December 31st was described as 26.5m, representing a decrease of 4.3m since the year-end.

International online information and events group Euromoney Institutional Investor has reported a small increase in its revenue during the period from October 1st to January 30th, according to an interim management statement issued by the company on Thursday. The company recorded a total revenue for the period of �95.1m compared to �94.6m in the corresponding quarter in 2012. Since reporting its 2012 results in November, the company stated that trading had continued in line with the board's expectations. Challenging trading conditions were experienced in the second half of financial year 2012 which had continued into the first quarter of financial year 2013, the report indicated.

Euromoney: Investec raises target price from 865p to 990p and reiterates a buy recommendation.