Investec upgrades Digital 9 Infrastructure to tactical 'Buy' rating after sell-off

Credibility ‘irreparably damaged’

Valeria Martinez
clock • 1 min read

Investec has upgraded its Digital 9 Infrastructure (DGI9) rating from ‘Sell’ to ‘Buy’ following the aggressive sell-off of the trust's shares on Thursday (28 September), arguing it presents a “tactical opportunity”.

DGI9 shares plummeted 40% yesterday (28 September) after the board announced it would scrap the trust's 6p dividend target for the 2023 financial year and not declare a dividend for the second quarter, due to ongoing liquidity and balance sheet pressures. The pessimistic market reaction also followed what Investec described "disappointing" interim results, as well as progress on the potential syndication of a majority or co-controlling stake in Verne Global and the launch of a shareholder consultation to determine the trust's future.  Digital 9 Infrastructure shares plummet by 40% as ...

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