RBC Capital analysts lowered their price target on Dun & Bradstreet Holdings, Inc. (NYSE:DNB) to $15 from $18 ahead of the company’s upcoming Q3 earnings announcement.
According to the analysts, strength in KYC should sustain solid momentum in F&R. In addition, solid pipeline, pricing, and new product innovation are expected to improve organic growth in the second half of the year.
However, the analysts mentioned they continue to monitor for a potential slowdown in usage-based revenues, S&M, and the impact of European macro weakness on Bisnode. Although investments weighed on H1/22 margins, the analysts believe Bisnode cost synergies should help drive margin expansion in H2/22. However, their updated Q3/22 EPS and 2022 estimates are modestly below the Street estimates due to FX headwinds and higher interest expense.
The analysts expect Q3 revenue to be $557 million, roughly in line with the Street estimates, however, their EPS estimate of $0.28 is modestly below the Street estimate of $0.30. For 2022, the analysts expect revenue/EPS of $2.241 billion/$1.11.