'Resilient and good value,' Barclays starts Springer Nature with 'overweight'

Springer Nature AG & Co KgaA

27/11/2024 11:30

** Barclays initiates Springer Nature  SPGG.DE  with
"overweight" rating saying the German publishing group's stock
offers good value and exposure to resilient industry
    ** "Academic Publishing is one of the most resilient
industries we have come across, with organic growth not dipping
negative in any of the recent major downturns," the brokerage
says
    ** It adds the stock's valuation of 14x P/E and 10.8x
EV/EBITDA on 2025 is "looking good" as the broker expects about
7% FCF and adjusted EPS growth going forward
        ** Barclays notes that Springer Nature's core journals
business has a long track record of growth delivery, and low
level of competition 
  
        ** It notes an overhang risk from BC Partners, which has
36% stake, but adds that improving liquidity can help the story
over time
  
    ** Out of eight analysts that cover Springer Nature, all
rate the stock "strong buy" or "buy"

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))