Barclays reinstates coverage of LSE at 'overweight'
London Stock Exchange Group
8,802.00p
15:10 24/04/24
Barclays reinstated coverage of London Stock Exchange on Tuesday with an ‘overweight’ rating and 110p price target following completion of its $27bn acquisition of data analytics firm Refinitiv.
Financial Services
13,850.27
15:10 24/04/24
FTSE 100
8,058.49
15:10 24/04/24
FTSE 350
4,429.76
15:10 24/04/24
FTSE All-Share
4,384.14
15:10 24/04/24
"LSE has markedly shifted its financial model with now over 70% of revenues arising from the new Data and Analytics division and circa 70% of revenues generated on a recurring basis," Barclays said.
"With the attractive business mix shift combined with the Refinitiv synergies, we forecast 19% proforma earnings per share growth 2020-2023e, sharply higher than the global exchanges and more like the Information Providers sector with its greater growth credentials and earnings visibility and commensurately higher valuations (30% premium to global exchanges)."
Barclays said these changes are not yet fully reflected at the current valuation.
At 1530 GMT, the shares were up 2.5% at 102p.