Proactive Investors - The London Stock Exchange Group PLC (LON:LSEG) made a splash during last week’s capital markets day with the announcement of a £1 billion share repurchase and subsequent City reactions have been largely positive on the capital markets and data group’s operational performance.
“Almost three years after closing the Refinitiv deal, the new LSEG has improved the assets it bought and achieved decent growth,” remarked Benjamin Goy at Deutsche Bank (ETR:DBKGn) in a Tuesday research note.
The $27 billion Refinitiv acquisition marked a major turning point for LSEG, expanding the City of London stalwart’s commercial footprint into the lucrative global financial data industry.
Goy noted that LSEG’s tie-in with Microsoft (NASDAQ:MSFT) could be even more transformative while the CMD “was a good qualitative update on the medium-term strategy”, even though the guidance was “relatively wide and largely in line with expectations”.
“After a good year for the top-line we expect some slowdown and only limited margin improvements in 2024,” remarked Goy.
Deutsche Bank maintained a hold rating, with Goy contending that the share price is “in line with its global peer group”.
Although LSEG has some clear bullish factors in its investment thesis, shares are potentially overbought with a 23-times earnings-per-share ratio.
Shares were changing hands for 8,668p at the time of writing.