Pearson: Credit Suisse upgrades stock
(CercleFinance.com) - Credit Suisse has upgraded its rating on Pearson shares to 'neutral' from 'underperform', while reducing its target price from 750p to 680p.
The broker says that the educational book publisher's 9m trading update came out "weaker than we expected and not very comforting", on the financial and strategic progress in higher education courseware.
"As a result, we reduce our adj. EPS by 3.8% to 32.8p in 2021 and by 7.8% to 37.9p in 2022," the analyst said.
However, Credit Suisse says that the share price's correction of around 30% since its H1 results justifies the upgrade on the stock.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker says that the educational book publisher's 9m trading update came out "weaker than we expected and not very comforting", on the financial and strategic progress in higher education courseware.
"As a result, we reduce our adj. EPS by 3.8% to 32.8p in 2021 and by 7.8% to 37.9p in 2022," the analyst said.
However, Credit Suisse says that the share price's correction of around 30% since its H1 results justifies the upgrade on the stock.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.