Pearson: UBS upgrades stock

(CercleFinance.com) - On Thursday UBS said that it has upgraded its recommendation on British the publisher Pearson from "sell" to "neutral," having increased its corresponding target price from 760 pence to 835 pence (current price: 845 pence, +2%).


In its comments, the broker justifies its upgrade by a greater predictability in terms of results.

Following Q1 results released this week, analysts do not perceive much risk of unpleasant surprises regarding earnings in the near term and expect Pearson's performance to improve over the next three years.

However, trading at a P/E of 20x to 2022, the broker believes that the share has limited upside potential at its current level.


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