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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

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Pearson will 'need to show its strong momentum is being maintained'

Pearson PLC (LSE:PSON) was one of the blue-chip stand-outs in 2022 and recently suggested it had finished the year in mixed style.

Hargreaves Lansdown analysts said the education group has "displayed some impressive momentum in its digital transformation and investors will want evidence this is being maintained", with shares up by 47% over the past year to make it the second biggest gainer on the FTSE 100.

Sales growth has come in almost every part of the business, helped by acquisitions as well as organic growth focused on direct-to-consumer sales and slimming its physical footprint.

"The company is well-placed to capitalise on the need to upskill armies of workers to fill talent shortages," analysts said.

"Given the sharp increase in its valuation, any slip up in its drive to be the global king of learning might cause a share price wobble. If there are any signs of progress in halting revenue decline in its higher education business, this would be a big plus point.

"But with traditional textbooks on the decline, it’s a tall order, and its why the pivot to digital is so important."

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