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Investing.com - London Stock Exchange Group Plc. (LON:LSEG:LN) stock fell after Keefe, Bruyette & Woods lowered its price target to GBP123.00 from GBP125.00 while maintaining an Outperform rating.
The price target reduction follows LSEG’s recent earnings report, which showed an adjusted earnings per share beat of 8.5p compared to KBW estimates. The adjusted EBITDA exceeded expectations by a more modest 1.0p.
KBW noted that the remainder of the EPS beat was primarily driven by one-time benefits in net finance expense and a lower tax rate. Despite these positive elements, LSEG shares dropped 7.9% after the earnings announcement.
The stock decline was largely attributed to investor concerns about the deceleration in Annual Subscription Value (ASV) growth in the second quarter of 2025. This slowdown raised questions about the competitive environment facing the company.
KBW slightly increased its estimates for LSEG following the earnings report, mainly due to foreign exchange factors, but ultimately reduced the price target to reflect "higher levels of uncertainty" while maintaining its Outperform rating on the stock.
In other recent news, Deutsche Bank (ETR:DBKGn) has adjusted its outlook for London Stock Exchange Group Plc by lowering the price target from GBP129.00 to GBP127.00. Despite the adjustment, Deutsche Bank continues to maintain a Buy rating for the company. The bank anticipates strong revenue momentum for LSEG in the second quarter of 2025. This expectation is based on the robust growth in the company’s data businesses and improved performance in its Markets segment. The Markets segment’s growth is noted to be supported by both structural and cyclical factors. These developments indicate confidence in LSEG’s potential for future revenue growth.
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