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Investing.com - Bernstein SocGen Group raised its price target on RELX Plc. (LON:REL) (NYSE:RELX) to GBP43.45 from GBP42.90 on Monday, while maintaining an Outperform rating on the stock. The $86 billion market cap company trades at a P/E ratio of 33.5x, reflecting its premium positioning in the information services sector. According to InvestingPro data, RELX has maintained dividend payments for 34 consecutive years, showcasing its financial stability.
The research firm cited RELX’s "unchanged trajectory" and noted the company’s strengths in Risk and Legal domains, where expertise creates competitive barriers.
Bernstein SocGen highlighted that RELX’s Scientific, Technical, and Medical (STM) division is gaining market share in Open Access publishing, benefiting from generative AI capabilities.
The firm maintained its target free cash flow yield range of 3.0-4.0%, with the 3.5% midpoint comparing favorably to the 2025-26 average of 3.6% and 4.1% seen for peers (or 3.3% and 3.6% excluding Gartner).
Bernstein SocGen noted that RELX shares are currently trading at the bottom end of its 2025-26 target range, while identifying user population levels in the Legal segment as an area to monitor.
In other recent news, Fitch Ratings has upgraded RELX plc’s Long-Term Issuer Default Rating to ’A-’ from ’BBB+’ with a stable outlook. This upgrade is attributed to RELX’s consistent operating performance and a resilient business model supported by its diversified portfolio. Fitch emphasized the company’s disciplined approach to capital allocation and leverage management. These developments reflect positively on RELX’s position in the global professional information and analytics segments. The stable outlook suggests confidence in the company’s future performance. Investors may find this upgrade noteworthy as it indicates a strong and stable financial standing for RELX.
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