Broker snap: Informa sees scope for higher margins

13th May 2011 12:47

Potential margin upside at Informa's Professional and Commercial Information (PCI) division has prompted RBS to raise its target price from 530p to 560p for the specialist business publisher and trade events group.PCI provides books, journals and database products to sectors including healthcare, pharmaceutical and financial services, and accounted for around 30% of group revenue in 2010.The group said that the transition from print to digital has transformed the business and creates scope for higher margins."Management regards PCI as a hidden jewel: 88% of revenue is digital, 74% of revenue is subscription, and Informa has strong positions within discrete niches," the broker said.A 'buy' stance is retained.---BC