Shares in Daily Mail and General Trust were hit again this morning following a downgrade by Citigroup.
The move follows a warning by the media group last week that revenues would fall in 2018 as the result of “challenging” trading conditions.
That announcement saw a 24% fall in its share price from 702p to 858p.
Price target lowered
After a slight recovery, it fell again this morning by 2.2% to 575p when Citigroup analyst Natasha Brilliant downgraded the bank’s rating to neutral and lowered the price target from 880p to 600p.
“It’s been a tough year for DMGT. We saw two profit warnings in H1 under the new management team,” she said.
“And at the FY17 results last week, expectations for next year were rebased which, coupled with a dilutive disposal of EDR, has resulted in a more than 20% cut to consensus earnings.
“The company themselves believe there is more work to be done on the portfolio, and a number of DMGT’s underlying markets remain challenged with both cyclical and structural headwinds taking effect.”
She added: “At this stage, we have limited visibility on any potential improvement. On the positive, the balance sheet is in good shape suggesting a potential for increased shareholder returns, and valuation does not look stretched vs peers.”
By midday the Daily Mail and General Trust share price had recovered slightly to around the 590p mark.