JP Morgan has raised its price target for Pearson PLC (LSE:PSON) to 1,220p, up by 200p, while reiterating its 'overweight' recommendation.
The American investment bank is set to delve into Pearson's virtual schools and the anticipated growth of its US Higher Education (USHE) sector in a fireside chat with divisional CEO Tom ap Simon on March 27.
This discussion comes after JP Morgan's comprehensive review, forecasting a potential return to growth for USHE, with an expected increase of about 2% this year and a medium-term growth rate of 4-5%.
This expansion is attributed to recapturing the secondary market and leveraging Pearson+ for upselling and cross-selling opportunities in areas like English Language Learning, Assessment & Qualification, and workforce skills.
While further exploration into workforce skills will follow, the current upgrade underscores JP Morgan's optimism about Pearson's growth trajectory and diversified educational offerings.
The shares were trading sideways at 1,109p.