London Stock Exchange Group PLC (LSE:LSEG), the operator of the London Stock Exchange, has been upgraded by the UBS due to bullish prospects in the year ahead.
The Swiss bank's rating on the data group moved to buy (from neutral) based on its relative undervaluation compared to data service peers with a new price target of 13,500p.
UBS noted a 20% upside with the new target “driven by earnings growth” but that upside potential 20-25% is higher if LSEG can narrow a valuation gap with Info Services peers.
Separately, the FCA said it is starting consultations on how to implement a new matched bargain platform called Pisces on the LSE.
Simon Walls, interim executive director of markets at the FCA, said: “Next year we will ring the bell on a new private stock market that could transform how private companies access funds and grow.
“It will offer investors more access and a greater confidence to invest in private companies and could act as a stepping stone to public markets for those firms.
“We want to work with industry and ensure we have the right building blocks in place to support investment in growing companies.”
Aimed at institutions, professionals and high net worths, retail investors will not be allowed to participate.
The current junior market AIM has struggled to justify its billing as the place for new companies to raise new money, with many small firms choosing private funding or to list in the US if they are large enough.
Investors with long memories will recall AIM was set up to meet a gap in the market that matched bargain platforms at that time weren’t filling.