Pearson: Credit Suisse reduces target price

(CercleFinance.com) - While maintaining its "neutral" position on Pearson shares, Credit Suisse has lowered its target price for them from 1045p to 1000p, as it has reduced its adjusted EPS estimates for the publishing group in 2022 and 2023 to take account of current exchange rates.


However, the broker believes that the trading update scheduled for 18 January will probably show strong revenue growth: it expects annual organic growth of 6.4% (versus a consensus of 4.7%), following 9-month growth of 7%.

Given the group's conservative budgeting and target setting, it is also highly likely that adjusted operating profit will exceed both the consensus and the broker's own estimate of 443 million pounds.


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