Citi has reiterated its 'buy' rating on Informa with a 550p target price, following a strategy update and an investor field trip to the CPHI pharmaceutical trade show in Milan.
Its analysts emerge with an upbeat view on the events and academic publishing group's growth prospects.
The broker has been examining the potential separation of Informa's Taylor & Francis (T&F) academic publishing division, running illustrative scenarios on the use of proceeds and their impact on pro-forma leverage and adjusted earnings per share accretion or dilution in 2027.
Three key takeaways emerged from the Milan event.
First, Informa is actively developing non-exhibitor revenue streams across its events portfolio, a strategy that supports margin expansion.
The recent acquisition of Clarion Events gives the company a larger canvas on which to apply this monetisation approach.
Citi suggests the targeted £25 million of revenue synergies from the deal may prove conservative if the geo-adaptation strategy that has driven growth elsewhere in the portfolio is successfully applied to Clarion's events.
Second, the successful launch of LiveX in Abu Dhabi was flagged as evidence of resilience in the Middle East and a positive indicator for 2027 performance in the IMEA region.
Third, Informa's approach of geo-locating and geo-adapting events for local markets is continuing to support organic growth, a model Citi believes translates well to the Clarion portfolio.
The stock closed at £11.95, in line with Citi's target price.
