Dun & Bradstreet Corp. Receives a Hold from J.P. Morgan

By Ryan Adsit

J.P. Morgan analyst Andrew Steinerman reiterated a Hold rating on Dun & Bradstreet Corp. (NYSE: DNB) yesterday and set a price target of $125. The company’s shares opened today at $118.52.

Steinerman wrote:

“Commercial credit data analytics vendor DNB reported 3Q16 adj. EPS of $1.79, ahead of our estimate and consensus. The adj. EPS beat was primarily driven by better than expected operating margins and some shift of investment (~$3m) to 4Q16. Organic growth is the most important metric for an info services firm. DNB’s 3Q16 organic constant currency (o/cc) revenue growth was 1%, which was slightly lower than our forecast and roughly ~1% lower than what management expected partly due to a loss of a government contract. Separately, D&B announced a revision to the earn out structure with key Credibility executives (entered at the time of acquisition), which enhances retention incentives and expands operating flexibility without changes to the total payout amounts. This was also the first full quarter that Credibility contributed to organic revenue growth.”

According to TipRanks.com, Steinerman is a 4-star analyst with an average return of 10.9% and a 69.2% success rate. Steinerman covers the Services sector, focusing on stocks such as Resources Connection, Thomson Reuters Corp, and Verisk Analytics.

Dun & Bradstreet Corp. has an analyst consensus of Hold, with a price target consensus of $125.

Dun & Bradstreet Corp.’s market cap is currently $4.32B and has a P/E ratio of 23.59. The company has a book value ratio of -3.9614.

Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2016, Anthony Pietrontone, the PAO & Corporate Controller of DNB sold 5,811 shares for a total of $807,135.

Dun & Bradstreet Corp. engages in the collection, maintenance, and provision of commercial data, analytics, and insight on businesses. Its also provides business credit, sales and marketing, supply management, industry, and government solutions. It operates through the Americas and Non-Americas segments. The Americas segment consists of operations in the United States, Canada, and Latin America. The Non-Americas segment includes operations in the United Kingdom, Netherlands, Belgium, Australia, Greater China, India, and worldwide network. The company was founded on July 20, 1841 and is headquartered in Short Hills, NJ.