RELX PLC (LSE:REL) is beginning to prove its doubters wrong by showing that artificial intelligence could accelerate growth rather than disrupt its business, although analysts believe further evidence is needed before the shares secure a substantial re-rating.
Following first-half results from the FTSE 100 giant, Deutsche Bank retained its 'buy' recommendation and lifted its target to 3,100p from 3,050p, while UBS reiterated its 'buy' rating and 3,600p price target, implying almost 47% upside from the latest close of 2,451p.
RELX has been one of several data and software publishers hit hard by investor fears that AI could undermine their business models, eroding demand for the subscription products and specialist tools.
But UBS analyst Jo Barnet-Lamb said the results showed "AI-led organic acceleration", with growth at the Scientific, Technical & Medical division increasing to 6% and Legal advancing to 10%.
Adoption of products including LeapSpace and Lexis+ with Protégé continues to rise, supporting what UBS described as a "multi-year growth and upsell opportunity".
Group organic revenue increased 7%, while margins expanded by 70 basis points – well ahead of the 20 basis points expected by analysts.
Deutsche Bank's Steve Liechti said the rapid introduction of products and increasing usage suggested RELX was "only at the beginning of the growth/upside journey".
He argued that "AI worries look overplayed" because rivals using large language models cannot easily access or replicate RELX's proprietary content, data infrastructure and embedded tools.
Barnet-Lamb agreed that structural disruption was unlikely, noting that the first-half figures showed "no evidence of AI-related disruption". However, he expects the wider "AI overhang" to weigh on the shares in the near term.
RELX shares trade at 17.6 times forecast 2026 earnings, well below its five-year average of 24.1 times, the UBS analyst noted, calling it "a re-rating story" requiring continued delivery to close the widening gap between earnings momentum and share-price performance.
