On Tuesday, Jefferies, a global investment banking firm, updated its outlook on London Stock Exchange Group Plc (LON:LSEG:LN) (OTC: LNSTY) shares, increasing its price target from £110.00 to £115.00. The firm has maintained its Buy rating on the stock.
The adjustment reflects Jefferies' positive stance on the company's potential for growth, particularly in its subscription income, which is expected to begin accelerating from the year 2025 onwards. The Data & Analytics division is identified as a primary driver for this growth.
Jefferies' analysis suggests that the London Stock Exchange Group may experience an upside risk to consensus forecasts from 2026 if it successfully leverages the expanded Total Addressable Market (TAM) made accessible through its partnership with Microsoft (NASDAQ:MSFT). This opportunity is seen as a key factor in the group's ability to increase earnings.
The firm's commentary indicates a strong belief in the London Stock Exchange Group's capacity for a multi-year period of earnings acceleration and expansion of its valuation multiple. Jefferies' assessment rests on a thorough examination of the company's bottom-up growth prospects against the top-down opportunities available to it.
The London Stock Exchange Group has not publicly responded to Jefferies' updated price target and Buy rating at the time of reporting. The group's shares are publicly traded on the London Stock Exchange and over the counter in the United States.
InvestingPro Insights
The outlook for London Stock Exchange Group Plc (OTC: LNSTY) is bolstered by several positive indicators. According to InvestingPro data, the company is trading near its 52-week high, with the price at 97.26% of this peak, signaling strong market confidence. This is further supported by a 14.73% one-year price total return, reflecting the stock's robust performance. Additionally, the company's commitment to shareholder returns is evident through its impressive track record of raising dividends for 24 consecutive years, with a current dividend yield of 1.78%.
InvestingPro Tips highlight the company's anticipated profitability, with net income expected to grow this year. Moreover, the company has been profitable over the last twelve months, suggesting a stable financial footing. For investors seeking insights beyond these highlights, there are 6 additional InvestingPro Tips available, providing a deeper analysis of London Stock Exchange Group's financial health and market prospects.
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