Pearson is likely to reveal no revenue growth when it publishes its first quarter updater on 28 April according to Citi.
The reason, says the US bank, is that an expected strong performance from English language learning and workforce skills will be offset by a heavy drop in sales at virtual learning.
Citi adds that “the real debate is whether the first quarter trading update heralds better trends in Higher Ed (and encouraging web traffic data for Pearson.com) and anything on potential cash returns”.
On both counts, Citi is optimistic but adds the forthcoming coming update will likely be too early for any action to result with something alongside the interim numbers more likely.
Overall, Citi concludes “Pearson looks attractive” with a buy rating and a 1,050p price target.
Shares today were down 0.6% at 834p.