Analysts at Deutsche Bank have clipped targets for London Stock Exchange Group PLC (LSE:LSEG), citing expectations of a challenging year for the company.
Analyst Benjamin Goy expects upcoming full-year results on 26 February to show resilient top-line growth and further margin expansion.
He noted that investor concerns over AI disruption are unlikely to be reflected in the reported figures or forward guidance. Deutsche Bank also pointed to ongoing capital returns through share buybacks as support for the investment case.
The German bank nevertheless repeated a 'Buy' rating, with the newly reduced price target of 11,400p, down from 11,900p.
DB does continue to see 30% upside to the revised target, given today's price of around 8,626p.
“LSEG will close a challenging year for the group's stock price, however we do not expect AI concerns to be visible in reported numbers or outlook,” Goy said.
While reaffirming an overall positive view on LSEG, the broker expressed a preference for Euronext and Deutsche Boerse, citing greater exposure to trading and post-trading revenues.
LSEG, meanwhile, trades on 16.3x 2027E price-to-earnings and 9.4x EV/EBITDA, the German bank noted.