RELX PLC (LSE:REL) shares rose 1.4% to 3,013p on Tuesday after Deutsche Bank upgraded the information-services group from hold to buy, arguing that worries over generative AI have created an attractive entry point for high-quality media names.
The broker lifted RELX’s target price from 3,700p to 4,072p, saying that despite a “tough” 2025 for the sector, a year that “started tough/got worse”, the backdrop looks “a bit better” in 2026.
Falling interest rates should help sentiment, though Deutsche Bank cautioned that volatility remains a factor.
In its wider UK media outlook, the bank said many stocks had underperformed, apart from Informa and Canal+, due to a “toxic mix” of macro uncertainty, geopolitical tension and fears about AI disruption.
It argued that while the AI debate will continue to swirl, the actual impact on business models will be more mid-term, and that concerns appear “overblown” for business-to-business operators and platform companies.
Deutsche Bank set out a framework for assessing AI risk, looking at content quality, tech capability, funding for investment and market positioning, and concluded that selectivity matters, but opportunities are emerging.
Cyclical names look cheap, it added, provided the macro picture stabilises.