UPDATE: Raymond James Starts Dun & Bradstreet (DNB) at Market Perform, Remains a Show Me Story

Raymond James analyst Patrick O'Shaughnessy initiates coverage on Dun & Bradstreet (NYSE: DNB) with a Market Perform rating seeing the company as a "Show Me Story". Dun & Bradstreet has existed as a brand since 1933 and the firm is a long-established data provider with a historical strong competitive position in private company content. Over the past five years D&B has averaged 0% organic, constant currency revenue growth, despite client revenue retention of 96%. In our view, the company's negligible historical organic revenue growth was a function of limited pricing power and relatively modest new sales activity. Going forward, robust competition in key use cases presents a challenge to significantly improving the firm's performance, although we do expect some upside relative to recent years.

The analyst stated "D&B's new management team has dramatically shaken things up at this historied data provider since taking over in 2019, including significantly boosting the company's margin profile. However, it remains to be seen whether a better go-to-market strategy and improvements to D&B's data content will drive a material improvement over the company's historical organic revenue growth, and we see incremental competition facing D&B in key use cases. While the stock has underperformed since its 2020 IPO and the valuation is well below those of other information services peers, we need more reason to be optimistic about a structurally improved organic revenue growth profile before recommending D&B's shares."

For an analyst ratings summary and ratings history on Dun & Bradstreet click here. For more ratings news on Dun & Bradstreet click here.

Shares of Dun & Bradstreet closed at $24.21 yesterday.

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