Citi says LSE shares too cheap, upgrades to ‘buy’

Citi upgraded its recommendation on London Stock Exchange shares on Wednesday to ‘buy’ from ‘neutral’ and upped the price target to 9,300p from 8,600p.

"LSE stock is simply too cheap in our view following the recent de-rating," the bank said.

It noted the shares now trade on only 21x 2023 estimated earnings per share, which it said was low versus history and peers.

"EPS momentum has been poor, but in our view consensus has now largely corrected as cost messaging has improved," Citi said.

"2022 should see a return to more respectable growth, with Refinitiv integration one step further along, an FX headwind set to become a tailwind and M&A optionality a feature once more."