Pearson PLC (LSE:PSON) is in favour with Citi ahead of tomorrows trading update (Wednesday 18) with the US broker predicting 2023 will be another year of strong growth.
Shares in the online education specialist easily outperformed the market in 2022 says the bank, delivering a 57% return against flat comparators, but sentiment has turned more cautious recently due partly to those strong gains but also currency (£/$) tailwinds becoming headwinds.
Because of these, Citi has downgraded its forecasts by 5% but adds that strong growth in web traffic is countering this.
Usage/visitor numbers for Pearson.com (the platform over which key product Pearson+ is delivered) have been strong notes Citi, which expects this to translate into another good year
A full divisional breakdown won’t be available until the full results in March, but Citi sees next week’s update as a potential positive catalyst even so.
'Buy' is its investment take.
Shares were 926p, down 1.3% today.