Capital markets and financial data provider London Stock Exchange Group PLC (LSE:LSEG) has received a small upgrade from Deutsche Bank ahead of this month’s quarterly earnings report.
Deutsche analyst Benjamin Goy said he expects “good” third-quarter results on 24 October.
He stated: “We forecast organic revenue growth above 8% thanks to another quarter of high growth at Tradeweb and solid growth in the data businesses.
‘Well flagged non-recurring impacts (including the Euronext clearing termination) likely weigh on growth in Post Trade.
“Ahead of results, we reduce our estimates by 2% to 4%, mainly due to a stronger GBP.”
With shares trading at 24 times forward price to earnings, Goy sees LSEG stock as “largely fairly priced”, although the share price target was bumped up from 9,200p to 9,700p after Deutsche Bank rolled its valuation out to 2026.
LSEG shares were swapping for 10,220p in early Wednesday trades.