Buy recommendation good news for IN&M

SHAREHOLDERS in Irish Independent owners Independent News & Media attending the company’s AGM today, will be buoyed by Goodbody Stockbrokers buy recommendation for the beleaguered share.

However, Goodbody analyst Neil Clifford’s new 12-month price target of €1.70 a share will, if achieved, be far lower that the €2.15 the shares traded at a year ago today on June 6, 2002.

Mr Clifford said the good performance of Indo shares since their last buy recommendation show a 24% rise. However, the shares still lag behind their 2003 high of €1.65 on January 16, but up of their 2002 low of €1.18 on March 12.

“We believe most of its performance to date has been sector driven. Independent News & Media has only marginally outperformed the media sector since the beginning of the year, up 5% compared to a 3% gain for the UK media sector as a whole,” he said.

“We believe the share price has yet to reflect the very decisive steps being taken by management to address the debt situation.

"A number of significant milestones have already been achieved and we believe a re-rating will eventually come as the company continues to deliver on its debt restructuring proposals.”

Mr Clifford said that on that basis Goodbody, who are stockbrokers to IN&M, are raising their 12-month price target from €1.45 to €1.70 and reiterating Buy recommendation on the shares.