Euromoney (ERM) £10.02

Loss to date: 9.9%

Original entry point: Buy at £11.12, 7 October 2021

Our ‘buy’ call on media group Euromoney Institutional Investor (ERM) is off to a shaky start, but the better-than-expected set of full year results published on 18 November include reasons to stay positive.

Concern over how mounting Covid cases might impact a recovery in its events business may be behind some of the recent weakness in the share price.

However, the latest results covering 12 months to 30 September saw Euromoney report a 13% rise in adjusted pre-tax profit to £61.4 million, ahead of a consensus forecast of £58.5 million. In a similar vein, the total dividend distribution of 18.2p per share was up 60% on the prior year and exceeded a consensus estimate of 17.1p.

Consultancy Megabuyte commented: ‘A better-than-expected second half performance underlines the increasing demand for its data, analysis and intelligence in key markets.

‘We also expect Euromoney to continue to bolt on subscription-based businesses in line with its 3.0 growth strategy (embedded in workflows, core target industry and solution-centric).

‘Positively, the outlook has notably improved, although with an air of caution around events in the short term.’

SHARES SAYS: You’ll need to be patient with Euromoney. The shares are still a buy.