UBS upgrades LSEG to ‘buy’ from ‘neutral’.
UBS upgraded its stance on LSEG on Tuesday to ‘buy’ from ‘neutral’ and lifted the price target 17% to 13,500p.
London Stock Exchange Group
17 December 2024 10:08:39
Source: Sharecast
“Over the next three years, we expect LSEG to accelerate revenue growth, generate circa 100 basis points of annual EBITDA margin expansion and grow EPS by 15% per annum (consensus expects similar)," UBS said.
"Despite this, LSEG continues to be valued like an exchange, trading at a significant discount to the US and EU Info Services names, despite stronger revenue and EBITDA outlook."
UBS said that if LSEG can achieve these expectations, there is a high probability it re-rates higher, which would offer 20-25% incremental upside to the bank’s price target.
"We conservatively forecast LSEG's forward price-to-earnings multiple to remain in the 28-29x range," it added.
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.
