Barclays downgrades Auction Technology to 'equalweight'

(Sharecast News) - Barclays downgraded Auction Technology on Tuesday to 'equalweight' from 'overweight' and slashed the price target to 600p from 880p. The bank said that while it remains constructive on the long-term structural growth of ATG, it is now more cautious on the near-term cyclicality of the business.

"Management guidance expects no further deterioration in end-markets, but after two top-line misses in a row we prefer to see proof in the numbers," it said.

Barclays added that at 17x 2024 price-to-earnings, the valuation is not cheap.

At 0935 GMT, the shares were down 4.9% at 495.50p.