‘Buy’ Informa, says Morgan Stanley

Global
financial analysts at Morgan Stanley have issued an investors’ note ,
recommending a ‘Buy’ for giant events
organiser and publisher Informa.

Morgan
Stanley cited Informa’s attractive cash generative businesses, faster growth
rates than its peers in events and the fact that the company was more geared to
the a buoyant market.

The
note comes after Informa CEO Peter
Rigby commented on “a pickup” and
“green shoots” in the company’s events business.

Development Director at
Informa, James Gareh, tells CN
Informa has seen a recovery across its events portfolio this year. “This
improvement has been led by an
increase in delegate numbers across our conference portfolio but also reflects
the strength of our exhibition business,” he said.

“Health and telecoms events were probably our strongest
performers during the first half and
we have also seen a bounce-back from the financial side. Continued
improvement across events and
training will help drive further growth,” Gareh
added.

Morgan
Stanley estimates Informa’s organic revenue growth for events at seven per cent
in 2011 and five per cent in 2012 as conditions improve

With
the “favourable changing mix of the business towards large scale events” and the
“fall away of £50m of low-margin revenues and high operational gearing,” Morgan
Stanley said Informa had raised estimates of Informa’s events margins from 17.5
per cent to 18.7 per cent for 2011.

“The
key to the events business is not that one needs rampant economic growth to
achieve a positive top line, but simply a mood of relative corporate optimism,”
the Morgan Stanley investor note added.

Euromoney, meanwhile,
recently reported delegate revenue up 21 per cent in Q3 and Reed Elsevier strong
attendee levels in 2010.

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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