JPMorgan puts LSEG on ‘positive catalyst watch’ ahead of CMD

by | Sep 15, 2023

(Sharecast News) – JPMorgan Cazenove upped its price target on London Stock Exchange Group on Friday to 9,920p from 9,867p and placed the shares on “positive catalyst watch” ahead of the capital markets day in November.
The bank said it was reiterating its conviction on the back of three considerations. Firstly, it expects a material upgrade to revenue growth targets as part of the new strategic plan, thanks to the growing momentum in Data & Analytics.

“Whilst our estimates are only modestly above consensus, we see upside risk if the Group quantifies the revenue contribution from the Microsoft partnership, which we think is not fully reflected in estimates yet,” JPM said.

Secondly, it said the valuation gap should narrow if growth accelerates.

“LSEG still trades at a 24% discount to data companies, despite offering similar earnings per share growth profile (on JPMe and Bloomberg consensus). The overhang risk, which might have previously capped its valuation, has also considerably reduced.”

Thirdly, the bank pointed to upside risk from capital generation and said bolt-on deals could continue to add inorganic revenue growth, with capacity for larger deals. “The company could otherwise continue with buy-backs,” it added.

JPM rates the stock at ‘overweight’.

Related articles

RBC Capital cuts Rentokil price target

RBC Capital cuts Rentokil price target

(Sharecast News) - RBC Capital Markets cut its price target on Rentokil Initial on Wednesday to 575p from 610p as it downgraded forecasts for forex and a greater back-end loading of TMX synergies, but said it believes the long-term story remains intact. The bank said...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!