JPMorgan raises LSEG stock price target to GBP139

Published 28/02/2025, 09:20
JPMorgan raises LSEG stock price target to GBP139

On Friday, JPMorgan analyst Enrico Bolzoni revised the price target for London Stock Exchange Group Plc (LON:LSEG:LN) (OTC: LNSTY) upwards to GBP139.00 from GBP137.00, while reaffirming an Overweight rating on the stock. The company, currently trading near its 52-week high with a market capitalization of $78 billion, has demonstrated strong momentum with a 34% return over the past year. InvestingPro analysis indicates the stock is trading at Fair Value levels. This adjustment follows the release of the company’s financial results for the fiscal year 2024, prompting JPMorgan to update its model and increase its earnings per share (EPS) estimates for fiscal years 2025 and 2026 by 3% and 1%, respectively. According to InvestingPro data, the company maintains a robust gross profit margin of 86.5% and has received the highest analyst consensus recommendation, suggesting strong fundamental performance. Additional insights and metrics are available through InvestingPro’s comprehensive analysis tools.

The analyst praised the company for another robust earnings report and reiterated confidence in LSEG’s ability to meet its medium-term goals and solidify its status as a leading global entity in data and financial services. Notably, the analyst expressed appreciation for the details shared by the company’s CFO regarding the strategy to achieve an EBITDA margin greater than 50% by the year 2026.

The report also highlighted the anticipated acceleration in both margins and revenues in 2026 compared to 2025. The analyst noted the significance of the planned rollouts of Open Directory and Microsoft (NASDAQ:MSFT) Teams in the second half of 2025, which are expected to be pivotal enhancements to the firm’s Workspace offering.

Furthermore, JPMorgan underscored the announcement of a £500 million share buyback program, interpreting it as a sign of LSEG’s robust cash flow generation. The buyback, although relatively small in relation to the company’s market capitalization, aligns with the firm’s target of generating £2.4 billion in free cash flow to equity by 2025. InvestingPro data reveals the company has maintained dividend payments for 25 consecutive years and shows a "GOOD" overall financial health score, with particularly strong growth and price momentum metrics.

In other recent news, UBS analysts have reiterated their Buy rating on London Stock Exchange Group Plc (LSEG) shares, setting a price target of GBP135.00. This reflects a potential 14% increase in share value, according to the analysts. They highlighted the significant role of LSEG’s partnership with Microsoft, which has positively influenced the company’s share performance over the past two years. UBS projects that the financial benefits from this collaboration will begin to materialize in 2026, with a potential increase of 160 basis points in EBITDA growth from 2026 to 2029. The analysts also anticipate a re-rating of LSEG as it transitions from being seen primarily as an exchange to being recognized as an information services provider. This transition is expected to drive further growth in the company’s market valuation. The partnership with Microsoft aims to enhance LSEG’s data and analytics capabilities by leveraging Microsoft’s cloud technology. UBS maintains a positive outlook on LSEG stock, supported by these strategic initiatives and partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.