Street Calls of the Week
Investing.com - UBS raised its price target on London Stock Exchange Group Plc. (LSEG:LN) to GBP110.00 from GBP105.00 on Friday, while maintaining a Buy rating on the stock. The move aligns with the broader analyst consensus, as InvestingPro data shows LSEG maintains a "Strong Buy" recommendation with a market capitalization of $66.7 billion.
The price target increase comes as LSEG shares have declined 18% over the past three months amid investor concerns about competitive threats from artificial intelligence. InvestingPro data confirms this downward trend, showing a more substantial 24.2% decline over the past six months, though the company maintains a perfect Piotroski Score of 9, indicating strong financial health.
UBS noted that LSEG management announced an incremental £1 billion share buyback program during its third-quarter 2025 results, a move that was not anticipated by the market.
The company also revealed changes to its revenue sharing agreement in SwapClear, which was another unexpected development according to UBS.
UBS projects these combined initiatives should be 4-5% accretive to London Stock Exchange Group’s earnings per share going forward.
In other recent news, the London Stock Exchange Group Plc. reported its latest earnings, revealing an adjusted earnings per share that surpassed expectations by 8.5p according to Keefe, Bruyette & Woods (KBW). The adjusted EBITDA also exceeded projections, albeit by a smaller margin of 1.0p. Despite these positive earnings results, KBW decided to lower its price target for the company from GBP125.00 to GBP123.00. However, the firm maintained its Outperform rating for the stock. These developments are part of the latest updates surrounding the London Stock Exchange Group.
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