January 07, 2021 – Dun & Bradstreet (NYSE:DNB) climbs 5.4%, its biggest one-day gain since July (if the increase holds by today’s close), after Jefferies analyst Hamzah Mazari said the stock was at “a pretty good entry point” after falling 12% over the past month.

That entry point assessment assumes the company’s organic growth will hit mid-single digits by the end of 2021.

DNB’s contract pricing may be underappreciated, noting that ~32% of its contracts are now multi-year, and that’s good because its multi-year contracts tend to have a price escalator after 12 months.  Also doesn’t see lockup expiry (Dec. 27) worries becoming a risk until stock is at $30+, citing the recent pullback and  management purchases at $26.

Furthermore, the analyst is optimistic about its Bisnode acquisition.

The “Bisnode proforma valuations makes this very cheap vs. peers,” said Mazari, figuring that associated debt and share count implies that DNB is trading at ~15.5x 2022 EBITDA, a ~5.3x multiple discount or ~25% discount to info services peers and ~1.8x multiple discount or ~10% discount to credit bureaus.

DNB’s return loses ground vs. S&P 500 since Dec. 23:

The Value Investor initiates a small position in DNB, saying its “sluggish” share price performance at the time (Jan. 3) makes the stock look “compelling.”

Source:  Seeking Alpha