Dun & Bradstreet upgraded to Neutral at BofA as 2022 plan progressing well
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Bank of Americas Securities analyst Heather Balsky analyst upgraded Dun & Bradstreet (NYSE:DNB) on Wednesday to Neutral from Underperform as the analyst sees the finance analytics and risk solutions company's 2022 plan as achievable and, when accomplished, should rebuild investor support.
Dun & Bradstreet (DNB) shares are gaining 1.5% in Wednesday premarket trading.
"DNB has now posted two quarters of solid sales beats and we model sequential improvement (excluding its GSA contract exit) through 20223E benefitting from higher prides (~2% in 2022E) and 20%+ growth at its Supply Chain Risk Management solution (~5% of sales)," Balsky wrote in a note to clients.
Relatively higher leverage and below-peer 2022E free cash flow conversion keeps her from rating the stock any higher.
Overall, the company's "turnaround story and relatively recession-resistant mode is attractive as economic risks tick higher," the analyst said.
Baslky's Neutral stance aligns with the Quant rating of Hold and diverges from the average Wall Street rating of Buy.
In April, SA contributor Daniel Jones, also with a Neutral rating, said Dun & Bradstreet's (DNB) fundamentals look strong and shares are trading at attractive levels.