Back to top

Analyst Blog

Acquisitions continue to play pivotal role in Dun & Bradstreet Corp. (DNB - Analyst Report) growth trajectory. Recently, the company acquired the social data matching business of Fliptop. However, the financial details of the deal were not revealed.

Based in San Francisco, Fliptop mainly aggregates social data. It then makes use of data science to extract information.

DNB believes that with this acquisition it would be able to associate the most up-to-date social profiles with businesses in its database. This will enable customers to have a more comprehensive view of people and businesses, which in turn would help them in differentiating between leads and targets and devise a business strategy accordingly.

We believe DNB will continue to pursue strategic acquisitions and partnerships, particularly in the emerging economies that will boost its overall growth. The company has entered into partnerships with local providers in 136 countries including countries such as Japan and Italy, which have helped it to penetrate the regional market within a short span of time.

Moreover, the company has also partnered with Salesforce.com (CRM - Analyst Report) to embed its solution in a customer’s CRM application. Also, its alliance with SugarCRM will help SugarCRM to enlarge its data offering. It also entered into an alliance with FirstRain recently, a maker of data analytics software, DNB intends to combine Fliptop’s software with that of FirstRain to create the social profiles of businesses in its database.

We believe these partnerships will help the company to expand its data-as-a-service model, which in turn will boost top-line growth going forward.

DNB’s high-margin business model, strong international growth potential, emerging market growth opportunities, strategic investments, incremental cost savings and new product pipeline will drive growth over the long term.

However, increasing competition from companies including Equifax Inc. (EFX - Analyst Report), Factset Research (FDS - Analyst Report) and Moody’s Corp. (MCO - Analyst Report) will hurt profitability going forward. Also, the company’s high debt level remains a major concern in the near term.

Read the Full Research Report on DNB
Read the Full Research Report on CRM
Read the Full Research Report on MCO
Read the Full Research Report on EFX
Read the Full Research Report on FDS


Zacks Investment Research

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%