Pearson’s US fortunes might be turning up according to analysts at Deutsche Bank, who have been looking at the trend of US college enrolments.
Applications for Federal Student Aid are up says the bank, which is a good sign for Pearson’s US exams and courses business after a long period of decline.
Some caution is needed, adds the bank and it will need further evidence of sustainable enrolment growth, reassurance on market share retention and Pearson+ paid subscription growth before it can become fully bullish again on the Higher Education division.
Preliminary NSC enrolment data is due soon and will be closely watched for signs of a more supportive multi-year trend, particularly for the Freshman cohort and Community Colleges.
'Buy' with a 1,080p target price is the Deutsche Bank view.
Shares were up 1% at 879p.