RBC Capital Downgrades RBC Capital's PT to $22 from $24

RBC Capital Downgrades RBC Capital's PT to $22 from $24

RBC Capital has revised its price target for Cannae Holdings (CNNE) from $24 to $22, while maintaining an Outperform rating [2]. This adjustment comes ahead of the company's second-quarter results and follows a broader analysis of the U.S. Asset Management sector.

The downgrade is attributed to the significant appreciation of assets under management (AUM) during the second quarter, driven by robust market returns. However, RBC Capital suggests a strategic focus on entities with non-U.S. or global AUM exposure, considering expected market performance and the potential long-term expansion of net inflows.

The average target price for Cannae Holdings Inc (CNNE, Financial) is $22.00, with a high estimate of $22.00 and a low estimate of $22.00, indicating a potential upside of 4.36% from the current price of $21.08 [2].

The consensus recommendation from 2 brokerage firms is currently 1.5, indicating a "Buy" status. GuruFocus estimates the GF Value for Cannae Holdings Inc (CNNE, Financial) in one year to be $17.89, suggesting a downside of 15.13% from the current price of $21.08 [2].

Cannae Holdings Inc (CNNE, Financial) reported strong financial performance from its portfolio companies, with Dun & Bradstreet and Alight exceeding consensus expectations. The company made significant progress in its Black Knight Football investments, including infrastructure improvements and strategic partnerships [2].

However, Cannae Holdings Inc (CNNE) experienced a 7% decline in total operating revenue for the first quarter, primarily due to lower restaurant revenue. The O'Charley's brand underperformed, contributing to a decrease in same-store sales, impacting overall restaurant performance [2].

References:
[1] https://www.gurufocus.com/news/2969330/cannae-holdings-cnne-price-target-raised-to-26-by-rbc-capital-cnne-stock-news
[2] https://za.investing.com/news/analyst-ratings/conocophillips-price-target-lowered-to-113-from-115-at-rbc-capital-93CH-3787010