Informa’s Strong Revenue Growth and Market Demand Justify Buy Rating Despite Segment Challenges

George Webb, an analyst from Morgan Stanley, maintained the Buy rating on Informa (INF – Research Report). The associated price target remains the same with p900.00.

George Webb has given his Buy rating due to a combination of factors that highlight Informa’s strong performance and growth potential. The company has exceeded expectations with a 7.9% increase in group underlying revenue, surpassing the initial forecast of 5.9% for the first half of 2025. This growth is largely driven by the robust demand in its B2B Events and Academic Markets sectors, with Academic Markets showing a significant 13.7% increase, partly due to non-recurring licensing agreements with AI companies.
Despite some challenges in the Informa TechTarget segment, which saw a 5% decline, the overall momentum in revenue growth is expected to exert upward pressure on the consensus forecast for the full year. This positive trajectory is anticipated to help counterbalance any negative impacts from currency fluctuations, particularly the weaker dollar. The current consensus on earnings per share appears reasonable, and the continued strong demand trends suggest that the stock is likely to trade higher, reinforcing the Buy rating.