Citi has reiterated its buy rating on publishing and business information giant Reed Elsevier following today's statement, saying the group is "still firing on all cylinders".

The US broker says that Reed's nine-month figures were in line, with the group growing across all divisions. "As expected there are relatively few hard numbers in the release, but those that are there are broadly encouraging."

"Reed does not have the perceived EPS [earnings per share] momentum of Pearson, nor does it have as comfortable a 'narrative'."

However, the broker assures that Reed's growth profile is comparable (superior actually in the first half) and the valuation is cheaper (trading at 10.6 times 2012 earnings versus Pearson which trades at 12.6 times). "Risk/reward, we think, tilts positively."

Nevertheless, the stock was among the worst performers in London today, trading 2.42% down at 524.5p by the close.

Peel Hunt said the statement was "solid, if unexciting" - "Although the stock attracts a premium rating, we prefer the smaller Informa and UBM for their superior growth characteristics and lower valuations."

BC

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