Analysts say 15% drop overstates risks from Claude CoWork launch
JPMorgan has reaffirmed its 'overweight' rating on London Stock Exchange Group PLC (LSE:LSEG) despite a sharp fall in the company’s share price, saying recent fears over artificial intelligence disruption are “unjustified and driven purely by negative sentiment”.
The sell-off was triggered by the release of Claude CoWork, a new AI agent from Anthropic aimed at non-technical users. The launch included 11 open-source plugins for workflows across legal, finance, sales, marketing and data functions.
One plugin in particular, dedicated to legal tasks, was cited by JPMorgan as the catalyst for a broader decline in data and software services stocks.
London Stock Exchange Group shares fell around 15% following the announcement, amid wider concerns that generative AI tools could erode demand for certain professional and data services.
JPM analysts led by Enrico Bolzoni argued that the price move was disconnected from LSEG’s fundamentals. “We once again see [the decline] as unjustified,” the bank wrote, emphasising that the company’s long-term data franchise and platform model remain resilient.
The note added that although AI will impact professional workflows, it is unlikely to displace core market infrastructure providers or trusted financial data aggregators in the near term.
Concerns have also extended to alternative asset managers with higher exposure to technology, including private equity groups such as EQT, which recorded some of the steepest share price falls during the same period.
Despite the volatility, JPM maintains that LSEG’s strategic position, recurring revenues and embedded client relationships position it well to withstand disruption. The bank did not revise its target price in the note.