The London Stock Exchange Group PLC (LSE:LSEG) spent its recent innovation forum convincing investors that artificial intelligence (AI) is more of an opportunity than a threat.
Both Citi and JP Morgan came away reassured, each reiterating positive views on the stock, even as shares slipped 2% during the event.
Citi said the forum, held on Monday (10 November), helped clarify investor concerns about a possible downgrade to guidance on total addressable market (TAM) growth in the group’s data and analytics division.
Management confirmed there had been no change to expectations, which helped steady sentiment.
Citi said the event, which featured a series of short, closed-door breakout sessions, underscored that LSEG’s product pipeline is competitive, particularly for Workspace, the group’s flagship data and analytics platform.
Investors have worried that AI-based challengers could disrupt Workspace, but new data on usage of LSEG’s tick history service supported Citi’s view that real-time data demand remains robust.
The bank reiterated its Buy rating with a target price of £133, noting that LSEG’s innovation programme appears well aligned with client needs and technological shifts.
JP Morgan struck a similar tone after attending the same event, describing LSEG as “well-positioned for an AI world”.
The bank highlighted management’s confidence in capital expenditure guidance and its dismissal of the idea that data providers risk being drawn into a capital spending arms race.
Particularly noteworthy, according to JP Morgan, was the “Smart Clearing” session, which pointed to fresh opportunities in areas such as foreign exchange post-trade services.
The bank believes the group remains backed by long-term trends, including rising data consumption and the integration of AI tools across its ecosystem.
With partnerships already in place with major AI players and greater disclosure around its in-house initiatives, JP Morgan said LSEG continues to look like one of the better-prepared incumbents in financial data for a world increasingly shaped by artificial intelligence.
In afternoon trading, the shares were up 1% at 9,174p.