In a report released yesterday, Surinder Thind from Jefferies downgraded Dun & Bradstreet Holdings (DNB – Research Report) to a Hold, with a price target of $9.15.
Surinder Thind has given his Hold rating due to a combination of factors surrounding Dun & Bradstreet Holdings’ recent acquisition agreement. The company has agreed to be acquired by Clearlake Capital for an enterprise value of $7.7 billion, translating to a purchase price of $9.15 per share. This price represents an 8% premium over the stock price prior to the acquisition rumors but is notably lower than the price from the 2019 take-private deal. Thind expresses surprise at the modest premium, especially considering the company’s improvements in revenue growth, margins, and leverage over the past five years.
Despite these improvements, the acquisition price suggests concerns about the company’s financial outlook and a possible motivation to sell by its current private equity owners. The organic revenue growth outlook for 2025 was below expectations, and macroeconomic uncertainties have increased. Thind also notes that the competitive landscape is evolving, and further investment in product offerings and technology could be beneficial for DNB. Given these factors, and the belief that a competitive bid is unlikely, Thind has downgraded the stock from Buy to Hold.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $9.15 price target.