Peter Christiansen, an analyst from Citi, has initiated a new Hold rating on NIQ Global Intelligence PLC (NIQ).
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Peter Christiansen has given his Hold rating due to a combination of factors that reflect both the potential and the current limitations of NIQ Global Intelligence PLC. The company is recognized for its strong global data platform, robust client relationships, and competent management team, which have all contributed to its recent infrastructure overhaul and re-capitalization. However, despite these positive aspects, the anticipated improvements in leverage, profitability, and free cash flow (FCF) conversion are not expected to materialize until 2027 and beyond.
Christiansen believes that the current stock valuation already accounts for the gradual progression towards improved FCF conversion, with peers trading at significantly higher multiples. He suggests that investors might benefit from waiting to see consistent performance that exceeds expectations, along with early profitability and reduced leverage, before becoming more optimistic about the stock. The $21 target price is based on a 9x-12x adjusted EBITDA multiple range, which is considered appropriate given the company’s relative FCF conversion and growth compared to its peers.
In another report released today, Deutsche Bank also initiated coverage with a Hold rating on the stock with a $21.00 price target.