Wells Fargo analyst Seth Weber maintained a Buy rating on Dun & Bradstreet Holdings (DNB – Research Report) today and set a price target of $15.00.
Seth Weber’s Buy rating for Dun & Bradstreet Holdings (DNB) is based on a combination of the company’s improving retention rates, potential for self-help initiatives, and positive underlying business momentum. These factors bolster his confidence in the company’s ability to increase its organic constant currency (OCC) growth. Despite facing skepticism from a short report, Weber is optimistic about DNB’s pricing strategy, which has not been significantly impacted by CPI inflation, and he believes that the targeted OCC growth acceleration to approximately 4-5% is achievable and will likely lead to out-year estimate increases.
Furthermore, Weber’s analysis considers DNB’s strategic moves, such as the shift to multi-year contracts and a focus on client retention, vital for sustainable growth. He notes that DNB’s pricing power is tied directly to delivered value, which should help maintain customer loyalty. Weber also addresses concerns regarding adjustments to EBITDA/ANI, explaining the rationale behind them, including the transition to cloud services and the associated one-time costs. The expectation is that as these costs subside, DNB will see an improvement in free cash flow conversion, supporting the company’s financial health and justifying the Buy rating.
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Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DNB in relation to earlier this year.
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Dun & Bradstreet Holdings (DNB) Company Description:
Dun & Bradstreet Holdings Inc is one of the leading providers of business decisioning data and analytics. The company provides commercial credit decisioning, which helps businesses to make informed decisions when considering extending business loans and trade credit. Also, the company offers solutions to firms looking to analyze supplier relationships and more effectively collect outstanding receivables. Other services provided by company include digital marketing, sales acceleration, and risk management among others.
Read More on DNB:
- Jehoshaphat Research says short Dun & Bradstreet
- Dun & Bradstreet Completes Eighth Amendment Transaction
- Dun & Bradstreet Holdings Refinances Loans, Amends Credit Agreement
- Dun & Bradstreet price target raised to $16 from $14 at Truist
- Dun & Bradstreet upgraded to Strong Buy from Outperform at Raymond James
