Pearson PLC (LSE:PSON)’s revival plans are disappointingly unambitious according to broker Berenberg, which has repeated its sell rating and target price of 590p.
New chief executive Andy Bird’s new vision for the educational group, in reality, is much the same as that of former management says the broker.
“Taking back the grey market in college textbooks, pushing into the lifelong-learning market, and growing virtual educational services are all strategies that Pearson has been pursuing for years.
“Pearson+ is progress, but it does not go far enough, in our view, and we have concerns about the format and sales strategy.”
Berenberg’s estimates are below consensus for both 2022 and 2023, given what it says is a more cautious view on prospects for growth.
It sees little break-up potential and 15% downside for the share price with the catalyst being earnings downgrades
Shares were 718.4p, up 0.8% today.