Proactive Investors - Whilst London Stock Exchange Group PLC (LON:LSEG) has been a strong performer so far in 2023 analysts at Deutsche Bank (ETR:DBKGn) reckon the share is now “range bound”.
Benjamin Goy, analyst at the German bank, in a note highlighted that LSEG shares climbed as much as 23% in the first half - and was now up 13% - which has seen it outperform all other major exchanges and many of the company’s data peers.
Goy pointed to a capital markets day later this year, in November, which could potentially act as a fresh value catalyst if details are provided regarding LSEG’s Workspace (LON:WKP) and Microsoft (NASDAQ:MSFT) integration.
“In the interim period the share price could be range bound with FX headwinds and modest earnings per share downgrades (we cut by 3% ahead 2Q23 results),” the analyst said.
Deutsche has repeated its ‘hold’ rating for LSEG and lowered its price target to 8100p, from 8200p, and Goy described the current price of around 8006p as “fair” (at 23x 2024 EPS and 16x EV/EBIT).
Earlier this year, in May, a substantial batch of LSEG shares were sold into the market as major holders divested via a placing. Around 33 million shares were sold at a price of 8050p.
It followed the expiry of lock-up arrangements governing Blackstone (NYSE:BX) and Thomson Reuters (TSX:TRI)' indirect shareholding which previously applied to 66 million shares.