Analyst Bruce Hamilton of Morgan Stanley maintained a Buy rating on London Stock Exchange (LSEG – Research Report), with a price target of p13,500.00.
Bruce Hamilton has given his Buy rating due to a combination of factors that indicate a positive outlook for the London Stock Exchange. The company’s financial performance has been reassuringly in-line with expectations, with revenues slightly exceeding projections in areas like FTSE, Tradeweb, and OTC clearing. Additionally, effective cost management has resulted in a 1% better EBITDA, while net finance costs have contributed to a 2% pre-tax profit beat and approximately 3% earnings per share and dividend per share beat.
Looking ahead, the London Stock Exchange’s guidance for 2025 suggests a promising growth trajectory, with constant currency revenue growth expected to be between 6.5% and 7.5%. This growth is underpinned by improvements in data and analytics, as well as a robust product pipeline with Microsoft. Furthermore, the company’s EBITDA margin is anticipated to expand by 50-100 basis points in 2025, aligning with market expectations. These factors, combined with a strategic capital return plan, support Bruce Hamilton’s Buy rating for the stock.
According to TipRanks, Hamilton is ranked #985 out of 9385 analysts.
In another report released today, Jefferies also maintained a Buy rating on the stock with a £135.00 price target.