London Stock Exchange: Barclays raises target price
(CercleFinance.com) - Barclays has raised its target price to 4635 pence on London Stock Exchange Group, saying the market is "unduly pessimistic" on margins.
In a report sent to clients, the broker wrote that the stock exchange operator has recently reiterated its 2019 EBITDA margin target of 55%, which appears "achievable" in Barclays opinion.
"We highlight that transatlantic exchange peers already operate with margins in the mid-50s% and higher, and structural revenue drivers appear favourable," Barclays said.
In its opinion, the consensus estimate of 52% appears "overly cautious."
Barclays has an "overweight" rating on LSE shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a report sent to clients, the broker wrote that the stock exchange operator has recently reiterated its 2019 EBITDA margin target of 55%, which appears "achievable" in Barclays opinion.
"We highlight that transatlantic exchange peers already operate with margins in the mid-50s% and higher, and structural revenue drivers appear favourable," Barclays said.
In its opinion, the consensus estimate of 52% appears "overly cautious."
Barclays has an "overweight" rating on LSE shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.