Liberum has upgraded Hyve Group to a ‘buy’, arguing that the events specialist was well-placed to benefit as the sector reopens.
The broker, which previously had a ‘hold’ rating on the stock, said domestic exhibitions and conferences were already returning, supported by the successful vaccine rollout programme, while international shows were expected to resume from early 2022.
It continued: “Hyve is better positioned for recover than its peers, giving its market leading position, and supplemented by hosted meetings we believe the group can return to high single-digit normalised revenue growth.”
Liberum believes the firm will see a near full recovery in 2024 compared to 2019, “which is perhaps conservative but provides room for further disruptions”, it noted.
Updating on trading last month, Hyve, formerly known was ITE Group, said half-year sales were likely to be sharply down on the previous year. But it also confirmed it had been able to run 12 in-person events in Europe and Asia during the period.
Liberum also upped its price target on the stock, to 140p from 120p. As at 1230 BST, shares in Hyve were largely flat at 116.56p.
