TechTarget CEO interview The CEO of Nasdaq-listed TechTarget (N/R), Gary Nugent, on Friday was interviewed by the exchange to set out the aspirations and plans for the business, which was recently formed from the merger of Informa Tech and TechTarget. As a reminder, Informa owns 57% of the business, which has seen its share price under pressure in recent times; we believe highlighting the value creation opportunity at TechTarget (and hence merger rationale) is a key aspiration for Informa in 2025. Seizing the opportunity The CEO highlighted TechTarget’s key position in connecting buyers and sellers in the B2B tech industry, with a known permissioned audience of 50m across 220 publications that tech vendors want to sell too, and - uniquely - TechTarget’s data is enriched with data from Informa’s exhibition business. The market is estimated at $20bn, with the current $500m revenue run rate just a 2.5% share thus far, and after a period of cyclical weakness, AI is expected to provide an impetus to demand. We first discussed in detail the opportunity for Informa Tech to mimic the success of TechTarget in early 2022 (Build it and they will come) and we continue to believe that the combined entity can generate significant equity upside for its investors as the cycle turns and as the enlarged scale allows the company to better capture the addressable market. Value to be had At TechTarget’s current c.$1.2bn market cap, Informa’s stake is worth c.£575m, compared to the c.£850m / 12x EBITDA valuation we apply in our SOTP (or 64p a share). Whilst relatively small in the context of the overall group, we think the under-appreciated value at TechTarget is analogous to the investment case for Informa overall. Despite the sharp rally in the past fortnight, we continue to believe that - as highlighted in our recent upgrade to Buy (within sector note here) - Informa’s scale, resilience and increasing use of data is not properly reflected in the valuation at <11x EV/EBITDA / 15x PE, a near record discount to RELX (Hold, 3800p TP).