Ascential Share News (ASCL)

(Sharecast News) - Analysts at Berenberg upgraded business-to-business media firm Ascential from 'hold' to 'buy' on Thursday following "an encouraging turn of events".
Berenberg stated that it had previously felt that the investment case for Ascential had been "somewhat dominated: by the wait for a return of events.

However, Berenberg's analysts said that when updating their numbers, it was actually Ascential's progress in its business transition that caught their attention.

"While our earnings estimates fall due to the sale of the company's Built Environment & Policy (BEP) segment, Ascential now garners over 60% of its sales from its digital subscription and platforms business," said Berenberg.

The German bank, which hiked its target price on the stock from 240.0p to 485.0p, also stated that greater visibility on returning events had contributed to 20% underlying earnings growth from the end of 2021 through to 2023.

"As the company's valuation remains only on a mid-teens 2022E EV/EBITDA multiple and a more than 4% FCF yield, we feel that this is simply too cheap to ignore," Berenberg said.