BofA says LSE Group shares trading at 'material discount'.
Analysts at Bank of America reiterated their 'buy' recommendation for shares of LSE Group, telling clients that the business's fundamentals were underpinned by "long-term secular trends" which in turn supported its high-quality growth on the topline.
Source: Sharecast
And despite enjoying a similar growth outlook as the other members of the super league of data vendors, such as S&P or MSCI, its shares were trading at a "material" discount.
There were risks to be had nevertheless, they said, singling out a style rotation among investors, as LSE was a classic high-quality compounder.
That meant the shares were likely to underperform a strong rally in value stocks.
The group's investments in innovation also needed to be seen to pay off.
BofA kept kept its target price unchanged at 9,550.0p.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
