JP Morgan has raised its share price target for RELX PLC (LSE:REL) to 4,890p from 4,630p after upgrading its outlook for growth in the company’s legal business.
The bank now expects annual growth of 10% in the division over the next decade, compared with its earlier estimate of around 8% to 8.5%.
The change comes after analysts, identified a broader market opportunity for RELX through the use of artificial intelligence in its legal products.
“We previously interpreted RELX’s expectation for legal growth ‘to accelerate over the next decade’ as growth accelerating from 7% to c8-8.5% over the next three years,” JP Morgan said.
“However, we now believe the market opportunity is much more profound than we had first anticipated.”
According to the note, RELX’s Lexis unit could use 'agentic AI' not only to improve its research tools but also to offer legal execution, expanding the number of customers it can serve. The analysts also said artificial intelligence could speed up and reduce the cost of new product development, improving returns.
JP Morgan has upgraded its valuation of the legal business by 20%–25% and restated its “overweight” rating on RELX shares. The company remains on the bank’s Analyst Focus List.
The shares were static at 3,992p.