UBS upgrades LSEG to ‘buy’ from ‘neutral’

“Over the next three years, we expect LSEG to accelerate revenue growth, generate circa 100 basis points of annual EBITDA margin expansion and grow EPS by 15% per annum (consensus expects similar)," UBS said.

"Despite this, LSEG continues to be valued like an exchange, trading at a significant discount to the US and EU Info Services names, despite stronger revenue and EBITDA outlook."

UBS said that if LSEG can achieve these expectations, there is a high probability it re-rates higher, which would offer 20-25% incremental upside to the bank’s price target.

"We conservatively forecast LSEG's forward price-to-earnings multiple to remain in the 28-29x range," it added.