Pearson’s first-half results on 31 July will act as a “positive catalyst” for shares in the education group according to US bank Citi.
Central to its view is the prospect of better-than-expected adjusted operating profit due to a mix shift toward assessments and qualifications.
In addition, there is potential for an upgrade to full-year guidance and a buyback to begin after the results and by September at the latest.
UBS also sees potential for an earnings upgrade given the momentum seen in the first quarter. with the broker also hoping for encouraging commentary on US higher education and Workforce Skills.