China and US agree to extend trade tariff truce, says Li
On Thursday, RBC Capital Markets increased its price target on London Stock Exchange Group Plc. (LON:LSEG:LN) (OTC: LNSTY) shares to GBP125.00, up from GBP116.00, while maintaining an Outperform rating. The firm anticipates that the company’s earnings growth will pick up pace in the coming year, potentially leading to a re-rating as it aligns with its data provider peers.
The analyst at RBC Capital expressed optimism about the stock’s potential, citing the upcoming fiscal year 2024 results on February 27 as a possible catalyst for capital return, which could enhance the stock’s attractiveness to investors. The revision in the price target to 12,500p from the previous 11,600p reflects this positive outlook.
RBC Capital also outlined an even more optimistic scenario where the stock could reach a target of 15,800p if London Stock Exchange Group were to trade at a multiple similar to that of its peers over a 12-month perspective. This scenario hinges on the group’s ability to match the valuation multiples of other companies in the same sector.
The firm’s analysis suggests that the London Stock Exchange Group is well-positioned for a strong performance in 2025, backed by an anticipated acceleration in earnings growth. This growth is expected to support the argument for a re-rating of the stock, as it seeks to match the valuation of its peers in the data provider space.
Investors are likely to watch closely as the London Stock Exchange Group approaches its fiscal year 2024 results announcement, which may include a capital return that could add to the stock’s appeal according to RBC Capital’s assessment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.