RELX PLC (LSE:REL) outperformed the market in 2023 with a 30% share price rally, but the British information and analytics firm has another strong year of growth in front of it, according to UBS.
In a research note, analysts pointed to strong organic revenue growth in RELX’s ‘Legal’ and ‘Scientific, Technical and Medical’ segments of 7% and 5% respectively, “driven by continued adoption of analytics tools, and initial sales of LexisAI+”.
Though RELX is not as cheap compared to this time last year, its forward-looking price-to-earnings (PE) ratio of 23 is still below the comparative European average of 24.
RELX is substantially cheaper compared to US competitors Thomson Reuters (NYSE:TRI) and Verisk which are trading at 35 and 32 PE respectively.
“RELX is one of few stocks in Europe that offers structural growth, a low asset beta, high liquidity, a healthy balance sheet, and short-term earnings upside potential,” said UBS.
Analysts gave the stock a 'buy' rating with a 3,640p price target compared to the 3,062p publication price.