Macquarie has downgraded its recommendation on Hansard Global (LON:HSD) to 'neutral' from 'outperform', which it says is based on valuation grounds and that it expects the shares to pause for breath.
The broker pointed out that share price has performed well this year, with the stock up 24 per cent versus a 9.5 per cent increase in the FTSE.
It added: "The share price performance in the near term will depend on how management can manage the tricky dividend and longer-term earnings recovery. We believe management will be able to maintain the dividend, but expect the share price to mark time until cash flows improve."
Analysts have left their twelve-month price target unchanged at 128 pence per share.
At 3:31pm: (LON:HSD) Hansard Global PLC share price was +1p at 121p