Proactive Investors - RELX PLC (LON:REL) outperformed the market in 2023 with a 30% share price rally, but the British information and analytics firm has another strong year of growth in front of it, according to UBS.
In a research note, analysts pointed to strong organic revenue growth in RELX’s ‘Legal’ and ‘Scientific, Technical and Medical’ segments of 7% and 5% respectively, “driven by continued adoption of analytics tools, and initial sales of LexisAI+”.
Though RELX is not as cheap compared to this time last year, its forward-looking price-to-earnings (PE) ratio of 23 is still below the comparative European average of 24.
RELX is substantially cheaper compared to US competitors Thomson Reuters and Verisk which are trading at 35 and 32 PE respectively.
“RELX is one of few stocks in Europe that offers structural growth, a low asset beta, high liquidity, a healthy balance sheet, and short-term earnings upside potential,” said UBS.
Analysts gave the stock a 'buy' rating with a 3,640p price target compared to the 3,062p publication price.