WORLD - City analysts at Westhouse Securities have downgraded international event organiser, ITE Group, to a ‘neutral’ rating, and cut profit forecasts for the year by 15 per cent.
In a note issued to investors on 22 January, the group’s stock price target was revised down to US$2.42 (from $2.92).
The group is heavily exposed to the Russian market from where 60 per cent of its revenues come.
With the weakening of the rouble and the oil price squeeze and Western sanctions on Moscow, there are considerable anxieties in the market.
ITE made a pre-Christmas acquisition of a company with no business in Russia in a move seen as spreading the risk of its geographical exposure.
In December, ITE acquired the Breakbulk series of exhibitions and media from AXIO Data.
Breakbulk events serve the transport and logistics market for large-scale project equipment. They are held annually in Houston, Antwerp, Shanghai, Johannesburg, Istanbul and Sao Paulo.
Commenting on the acquisition, ITE’s chief executive officer, Russell Taylor (pictured), said: “ITE is continuing to build businesses in strategically important industry sectors and the acquisition of Breakbulk increases our presence in the global transport and logistics sector. This complementary move represents progress in achieving the group’s ambitions to expand its operations in markets and geographies with further potential for growth as well as continuing to diversify the geo-political risk in our portfolio.”
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