Update shared on 20 Nov 2025
Analysts have adjusted their price targets for RELX downward, with notable reductions such as from 4,475 GBp to 4,250 GBp. They cite ongoing benefits from generative AI adoption in legal markets, but caution that increased competition may constrain near-term valuation multiples.
Analyst Commentary
Recent notes from street research provide a mixed outlook on RELX, reflecting both ongoing optimism about the company’s market position and certain short-term headwinds that may affect its valuation. Below is a summary of the main bullish and bearish takeaways from recent analyst commentary.
Bullish Takeaways- Bullish analysts highlight that generative AI is accelerating workflow efficiencies in legal markets and supporting revenue growth in RELX’s Legal division.
- RELX is regarded as one of the dominant players in the U.S. legal reference information market, suggesting continued resilience and competitive advantages.
- Ongoing innovation and data-driven offerings are perceived to strengthen RELX’s market moat, enhancing its long-term growth prospects.
- Some analysts have upgraded their recommendations on RELX, moving to a more positive stance in light of emerging technology benefits and solid execution in core markets.
- Several bearish analysts point to rising competition in the legal information sector, which is expected to constrain RELX’s near-term valuation multiples.
- Despite AI-driven growth, debates around market share and competitive responses are raising concerns about the pace of margin expansion.
- Recent reductions in target prices reflect caution around the sustainability of accelerated growth rates, particularly as market peers also innovate rapidly.
- Some see valuation as elevated relative to historical levels, emphasizing the need for continued execution to justify premium multiples.
What's in the News
- RELX PLC reaffirmed earnings guidance for the full year 2025. The company anticipates strong underlying revenue growth and expects adjusted operating profit growth to be slightly ahead of revenues (Key Developments).
Valuation Changes
- The discount rate has risen slightly from 7.27% to 7.56%, indicating a marginal increase in the required return for RELX shares.
- Revenue growth expectations remain nearly unchanged at approximately 6.46% year-over-year.
- Net profit margin is steady, holding at about 23.45%.
- The future P/E ratio has edged up marginally from 35.60x to 35.88x, reflecting a small shift in valuation multiples.
- The fair value estimate remains stable with no material change.
Disclaimer
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