Citi opens 90-day ‘positive catalyst watch’ on Pearson shares
Pearson
1,187.00p
17:00 06/11/24
0.17%
2.00p
Citi opened a 90-day "positive catalyst watch" on Pearson shares on Wednesday as it pointed to an attractive risk/reward.
FTSE 100
8,166.68
17:00 06/11/24
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FTSE 350
4,502.41
17:04 06/11/24
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FTSE All-Share
4,460.03
17:14 06/11/24
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Media
12,987.72
17:04 06/11/24
0.89%
115.11
"While we think new CEO Omar Abbosh’s business and strategic update in July will formally signal a pivot from value to growth for Pearson, lengthening its duration as an investment, we don’t see major earnings risk and note leverage-neutral valuation is toward decade lows," the bank said.
"Accordingly, we think overall risk/reward is attractive (base case 1170p but upside to 1550p on best case)."
The bank maintained its ‘buy’ rating on the shares.
At 0950 BST, the shares were up 1.9% at 959.20p.