Source: Sharecast
The broker said it has updated its forecasts to reflect "evolving industry dynamics across Videndum’s main customer categories and the group’s updated guidance".
As a result, its target for the shares has been cut from 140p to just 80p, with the stock having tanked more than 70% over the past year on the back of a number of profit warnings and reports of a slower-than-expected recovery in the media and film markets.
"While we recognise that management has taken steps to improve the business and improve liquidity, a number of changes will take time to take full effect, hampering earnings recovery," Berenberg said in a research note on Friday.
Nevertheless, the broker noted a "slowly improving picture" at Videndum, which sells both hardware (like camera supports and stabilisers, video monitors, lighting and audio equipment) and services to customers in the content creation industries.
"2025 has started softly, but is improving steadily month on month. Videndum has done a lot of work on the industry dynamics and trends as part of the current refinancing process, and so expects flat revenue year on year with low single-digit operating margins and a high H2 weighting," Berenberg said.
Despite the 'hold' stance, the broker acknowledged that Videndum shares are "inexpensive", trading at an enterprise value-to-EBITDA multiple of 7x.
The stock was up nearly 3% at 77.8p by 1014 BST.
