Analysts at Liberum raised their target price on media firm Ascential from 410.0p to 500.0p on Wednesday after the group’s digital commerce unit’s recent outperformance.
Liberum said Ascential’s digital commerce unit outperformed both market and its own expectations, delivering 27% pro-forma revenue growth.
However, Liberum stated that the market reacted negatively to a 9% share placing announced in conjunction with Ascential’s results.
“We however are now more bullish, given commentary around a healthy pipeline of digital commerce deals to execute which in the past have optically looked expensive, but given the growth rate of these assets provide material value 2-3 years following acquisition,” said the analysts, who also reiterated their ‘buy’ rating on the stock.
