Update shared on04 Oct 2025
Fair value Decreased 1.37%The consensus analyst price target for London Stock Exchange Group has been reduced from £132.00 to £127.00. Analysts cite modestly lower growth assumptions and slight adjustments to valuation metrics following recent sector performance.
Analyst Commentary
Recent analyst reports on London Stock Exchange Group highlight both optimism and caution regarding the company’s outlook. New price targets suggest slightly tempered growth expectations amid changing market dynamics.
Bullish Takeaways- Bullish analysts note that the recent underperformance in share price is seen as a potential buying opportunity, especially considering the company’s robust market position.
- Upgrades to an “Outperform” rating suggest confidence in the company’s execution and prospects for long-term earnings growth.
- Reaffirmed “Buy” and “Overweight” ratings, despite price target reductions, point to sustained belief in the group’s fundamental strength and valuation upside over time.
- Positive outlooks remain tied to expectations of disciplined management and resilience in core business areas, even as sector volatility persists.
- Bearish analysts have adjusted growth assumptions modestly downward, reflecting concerns about near-term revenue momentum.
- Multiple price target reductions indicate apprehension about valuation metrics given the recent sector performance.
- There is caution that further headwinds or market weakness could weigh further on operating performance and share price recovery.
- Some analysts highlight that current valuations may already reflect optimistic assumptions, limiting potential for sharp re-rating absent stronger execution.
What's in the News
- LSEG has launched its Digital Markets Infrastructure (DMI) platform for private funds. This platform enables blockchain-powered efficiency across asset lifecycles and has completed its first transaction. Built with Microsoft, the DMI platform is designed to broaden access and innovation in private markets. (Key Developments)
- A new share buyback program has been initiated with authorization to repurchase up to 53,060,997 shares, or 9.76% of issued share capital, following shareholder approval at the latest AGM. (Key Developments)
- LSEG has completed the repurchase of 4,000,000 shares, representing 0.75% of its issued capital, for £3 million under the latest tranche of its share buyback initiative. (Key Developments)
Valuation Changes
- The Fair Value estimate has edged down from £124.37 to £122.67, a minor decrease of about 1.4%.
- The Discount Rate has risen slightly from 8.89% to 8.94%, reflecting a modest adjustment in risk assumptions.
- Revenue Growth expectations have decreased marginally, moving from 5.70% to 5.67%.
- The Net Profit Margin forecast has fallen a fraction, from 16.24% to 16.22%.
- The future Price/Earnings ratio target has declined from 48.19x to 47.67x, indicating slightly lower valuation multiples.
Disclaimer
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