Will This Analyst Action Affect Dun & Bradstreet (DNB) Stock Today?

NEW YORK (TheStreet) -- Shares of Dun & Bradstreet Corp.  (DNB)  are up 0.42% to $117.71 after the company was upgraded to "outperform" from "neutral" at Robert W. Baird & Co.

Baird raised the business information, information technology, services, research and software company's ratings because they believe the new management can help turn the business around.

Baird set a price target of $135 for DNB.

TheStreet Ratings team rates DUN & BRADSTREET CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DUN & BRADSTREET CORP (DNB) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and deteriorating net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DNB's revenue growth trails the industry average of 18.1%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for DUN & BRADSTREET CORP is rather high; currently it is at 66.51%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.69% is above that of the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The change in net income from the same quarter one year ago has exceeded that of the Professional Services industry average, but is less than that of the S&P 500. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from $57.50 million to $49.90 million.
  • Net operating cash flow has declined marginally to $61.20 million or 1.92% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: DNB Ratings Report
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